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.
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.