15 April 2012
We have Chain of Hotels in India. These Hotels are given for Short Term Accommodation to Guests. The Buildings are taken on lease on which monthly rents are paid to the Landlords. In the Clause ZZZZ, it is written that immovable properties does not include buildings used for accommodation including hotels.Landlords charges Service tax on renting of building. Does Service Tax is applicable on this.
17 April 2012
YOu are ablosultely right. No service tax is applicable on it. It is specifically excluded under the definition of ímmovable property' You can negotiate with lanlords clarifying the legal position.