sankar ganesh armugam (PAID ASSISTANT) (29 Points)
09 July 2011If service provider - A Partnership Firm has let out a building of two floors to a company, under two different agreements stating that first floor is for Business purpose and rent payable is Rs 8,00,000/- P.M and second floor is for residential purpose of the company's employees for rent of Rs 3,00,000/- P.M. Should the service provider needs to pay Service Tax on the amount Rent collected for let out of Second floor for residential purpose.
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 09 July 2011
both parts are commercial, as the company is payee and its used for its commercial employees.
service tax is applicable on gross sum addiing both the floors
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 10 July 2011
If the premises is residential in my opinion, it does not matter who is paying the rent. Renting of commercial premises wouldbe liable as accomodation is excluded. However the new entry of a/c accomodation over 1000 declared value may have tobe examined.
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