My Client is lenting immovable property as : shops, banquets and flats for residential purposes.
With regard to Residential Property, i acknowledge service tax is not leviable. But follwing facts are disclosed further:
- There are 20 flats in an apartment
- Rent is more than 10 lacs
- Company has vacancy often i.e.renting is for short term say for 3-6 months. (basically, tenats are visitors who come to city).
- Rent agreement is made between the company and tenant for a year and tenat exits with penalty clause.
Questions are:-
- Does these flats can be considered as residential property to claim exemption
- Does it make any difference if tent\ant is a company i.e.to indicate company's executives comes and resides for short term.(sort of guest house).
Please answer ASAP. and let me know in the forum if facts and explanation are needed.
CAclubindia
