Service tax on renting of residensial unit

[Jignesh Patva]

Whether service Tax will be levied on renting of residential unit to a pvt. company who further giving such rented residential unit as Paying Guest or consider as in negative list service?

AI Summary

Debate on Service Tax: Is Renting Residential Units to Companies for Paying Guests Exempt Under Section 66D(m)? A forum discussion addresses whether service tax applies to renting a residential unit to a private company that uses it for paying guest accommodations. One participant argues that service tax is exempt for residential use under Section 66D(m) of the Finance Bill 2012-13. Another contends that renting to a company is commercial, thus taxable if annual rent exceeds 10,00,000. Others suggest the property's use and rental agreement terms determine tax liability, emphasizing that residential use should exempt it from service tax, regardless of whether the tenant is an individual or a company.