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.

AI Summary

Service tax threshold applies to each owner for furnished rental accommodation; tax applies only if annual consideration exceeds threshold. Service tax on privately provided furnished accommodation to women students or working women is triggered only when an individual owner's aggregate annual consideration for the taxable service exceeds the statutory threshold. Composite charges (rent, food, electricity etc.) billed without separation are treated as composite consideration for taxability. The threshold is applied to each owner individually; income tax remains separately applicable.