I want to know if there is service tax liability on an individual who has received rental income from lease of a residencial building given for residencial purpose to a LIMITED COMPANY. You are also requested to give us a site/reference of judgement/ruling. my email id is mpsbhopal@rediffmail.com
12 November 2011
Renting of immovable property is governed by provisions of section 65(105)(zzzz). Under this section renting of immoveable property is taxable if it is given for use in the course of or, for furtherance of , business or commerce. From the meaning of renting of immoveable property , inter alia, building used for solely for residential purposes has been excluded.
Therefore, service tax is not payable in your case.
CAclubindia
