Service Tax for private accommodation to women / girl students

[Shivansh Gupta]

Hi

Please advise the taxes applicable in case a privately-owned residential property with more than one registered owner is used to provide furnished accommodation to multiple girl students and working women for a period of more than 6 months a year, and when the charges include rent, food, electricity etc but not distinguished / separately indicated in the rent slip. The rent per tenant per month is ₹ 8000 and there are 6 tenants.

Your advice would be much appreciated

Regards

[Ganeshan Kalyani]

Service tax is not applicable if the consideration is less than Rs.10 Lacs.

[DR.MARIAPPAN GOVINDARAJAN]

What tax do you mean? Whether income tax or service tax or taxes applicable to your case? Income tax is applicable. Service tax is applicable if the transaction exceeds ₹ 10 lakhs in a year as mentioned by Shri Ganeshan

[Shivansh Gupta]

Thank you for your replies. Yes I wanted to know about Service Tax.

A follow-on query - Does 10 L per year limit apply for each owner individually, or for the whole property in total (all owners) ?

[DR.MARIAPPAN GOVINDARAJAN]

The threshold limit of ₹ 10 lakhs is applicable to each person.

[Ganeshan Kalyani]

Yes the limit is applicable to each individual and not property as a whole.