Applicability of Service tax

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Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2010 I have given my property on rent for running the same as guest house, if service tax is payable on rent?

Shyam Lal Naik

Shyam Lal Naik (Expert)
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04 May 2010 What is the purpose behind running the guest house by the tenant. If it is in the course of business or commerce/ ie. for commercial purpose, ST applicable, as per the budget proposal in this year's budget.

Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2010 The purpose is commercial but defination under clause 105 zzzz says that it does not include running of hotels used for residential accomodation. please clarify.

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Shyam Lal Naik

Shyam Lal Naik (Expert)
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04 May 2010 Sir,

I stood corrected. In your case, service tax is not attracted, as it is used for residential accommodation. Rightly pointed by you, it is excluded from the definition of immovable property.

Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2010 Thanks for the prompt reply.