TaxTMI 
TaxTMI 
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?
Service tax on renting of residensial unit
07 Jul 2015 
5 Replies 
2623 Views Asked by
Renting of residential dwelling exemption: actual residential use determines service tax liability, not the tenant's corporate status.
Service tax liability on renting depends on the nature of the service and actual use of the property. Renting for use as residence, including paying-guest accommodation, is exempt under the negative list. Taxability arises only if the rent agreement or facts demonstrate use in furtherance of a business or profession; the recipient's corporate status alone is not determinative. Examination of contractual terms, actual usage, and applicable taxability thresholds is required. (AI Summary)
Service tax liability on renting depends on the nature of the service and actual use of the property. Renting for use as residence, including paying-guest accommodation, is exempt under the negative list. Taxability arises only if the rent agreement or facts demonstrate use in furtherance of a business or profession; the recipient's corporate status alone is not determinative. Examination of contractual terms, actual usage, and applicable taxability thresholds is required. (AI Summary)