Service tax applicablity.

09 November 2013

Is service tax applicable on the rent of hostel collected by non-educational private entity?

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5 Replies

CA. Narottam Kumar Rawat (Indirect Tax Consultant) (394 Points)
Replied 09 November 2013

Dear Mr. Prashad,

Services of Hostels used for residential purposes will be exempt. Assumption there tariff rate is below Rs. 1000 per day.

Prasad Deshpande (.) (36 Points)
Replied 09 November 2013

Thanks for reply....but can u pls share the source like any notification/circular?

CA. Narottam Kumar Rawat (Indirect Tax Consultant) (394 Points)
Replied 09 November 2013

Dear Prasad,

Entry no 18 of mega exemption notification no. 25/2012-ST dated 20-6-2012.

Prasad Deshpande (.) (36 Points)
Replied 09 November 2013

but as per my interpretation Entry no 18 of mega exemption notification no. 25/2012-ST dated 20-6-2012 does not include Hostel.

CA. Narottam Kumar Rawat (Indirect Tax Consultant) (394 Points)
Replied 09 November 2013

The Word "other commercial places meant for residential or lodging purposes" covers Hostels, bed & breakfasts etc.

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