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Service tax on rent on gents rooms

179 views 5 replies

Eswar Reddy S

CFO- at NHTF

58275 Points Joined August 2012

Hi All, Is service tax applicable on rent on gents rooms /paying guest without food & no connection with education..The details are as follows 1.The owner took the entire building on rent and he is giving it on rent 2.Per room 3 to 4 persons 3.Monthly and daily stay available 4.Daily stay is 400/- 5.AC and NON AC for students ,working men and others 6.It is seperately managed , no connection with education. 7.It is for only residential purposes of students , working men and other either short term or long term. 8.Rent is charging on monthly basis... 9.Rent ,Electricity & maintenance shown separately in the receipt.... Tell me is service tax applicable on the above ??

Replies (5)

Mir Irshad Ali

Partner

192 Points Joined March 2013

Services for residential or lodging purpose accomodation are liable to service tax. However under Notfn No. 25/2012-S.T such services having declared tariff of a unit of accommodation below one thousand rupees per day or equivalent are exempt from payment of Service Tax.

18. Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation below one thousand rupees per day or equivalent.