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 Applicability on Residential Property Rented to Students and Working Women: Annual Income Threshold Explained A forum discusses the applicability of service tax for a privately-owned residential property rented to girl students and working women. The rent includes various utilities but is not itemized, and the total rent per tenant is 8,000 monthly with six tenants. It is clarified that service tax is applicable only if the total annual income exceeds 10 lakhs. Additionally, the 10 lakh threshold applies individually to each property owner, not collectively to the entire property.