TMI BlogSERVICE TAX ON RESIDENTIAL HOSTEL HIRED TO A CORPORATE HOUSE FOR THEIR EMPLOYEESX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, I have rented my residential house to one of the corporate house to use the same as hostel for their employees. The corporate house is not charging any rent from its employees. Kindly confirm, since it is a residential property and rented only for use as residential dwelling hence no service tax is applicable or it is a property given for commercial use , hence service tax is liabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to be charged ? CA Hiren Thakker. - Reply By Naveed S - The Reply = (i) [(90a) renting of immovable property includes renting, letting, leasing, licensing or other similar arrangements of immovable property for use in the course or furtherance of business or commerce - Herein, though the corporate house is not charging any rent from its employees, however such an activity by the comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any can be termed as FURTHERANCE OF BUSINESS. (ii) Even otherwise, the rent agreement/contract must have been with the company/corporate and not with the employees, which means that the residential property is used by the company in the course of its business, by way of providing accommodation to its own employees free of cost. Hence, my personal view is that service tax is required to be pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id on the rent income. - Reply By Hiren Thakker - The Reply = Dear Sir, Thanks a lot for your reply. I am a bit confused between the two purposes. One is actual using that is for residential purpose and second is the intention behind this use is commercial. Any way thanks for your early reply. CA Hiren. - SERVICE TAX ON RESIDENTIAL HOSTEL HIRED TO A CORPORATE HOUSE FOR THEIR EMPLOYEES - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Query Started By: - Hiren Thakker Dated:- 27-3-2014 Service Tax - Got 2 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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