Service tax- rent on immovable property

In my opinion , service tax will not be applicable on above since here property is let out by A to B i.e. A is providing service to B . B himself is not using the property might be the issue in your mind. In exemption the exemption is for Use as Residence.The other aspect that need to be examined is the period of stay? If the period of stay is temporary like in hotels ,Guest house etc then service tax will be applicable.

No service tax is payable by Mr.A.
However for deciding about whether Mr.B will be liable to pay service tax or not will depend on facts and circumstance of the case. For example if it is let out to persons for use as residence then it will come under negative list of services. However, if it is let out to persons on per day rent basis just like hotels.guest house etc. then service tax is payable if the declared tariff per day is Rs.1000 or more.

Mr. A has paid corporation tax wherein it is specified that it is non residential. Is service tax applicable in hands of Mr.A?

No Sir.. even in that case service tax is not applicable in the hands of Mr.A.