Clarification - renting of immovable property

[shyamal roychowdhury]

RENT OF IMMOVABLE PROPERTY It is clear that rent of immovable property for furtherence of busineess is taxable ( before the Honble DELHI HIGH COURT JUDGEMENT . My issue is when the companies takes house /flat on rent for /terming as GUEST HOUSE OF THE COMPANY & truly emplyoees who have come on tour & stay in the guest house or companies guest / or contractor for dicsussion stay in the guest house , weather this is termed FURTHERENCE OF BUSINESS OR THIS GUEST HOUSE WILL BE TREATED AS RESIDENTIAL UNIT NOT LIABLE TO SRVICE TAX .

AI Summary

Is renting a company guest house for employees or guests subject to service tax? Debate on business use continues. A discussion on whether renting a house or flat as a company guest house for employees or guests is subject to service tax. The issue centers on whether such use is considered 'furtherance of business,' which would make it taxable. One response argues that guest houses fall under renting of immovable property for business use, thus taxable, but notes a pending appeal to the Supreme Court. Another response suggests that the use is purely residential, thus excluded from service tax liability, assuming the Delhi High Court decision is not considered.