TaxTMI 
TaxTMI 
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 .
Clarification - renting of immovable property
26 Apr 2009 
2 Replies 
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Renting of immovable property: taxable when for business use; guest house classification determines service tax liability.
Whether company guest houses constitute renting of immovable property taxable as use in the course or furtherance of business, or instead qualify for exclusions such as purely residential use or exclusions for religious and non commercial educational bodies, determines service tax liability; administrative views conflict and a favourable High Court decision for the assessee has prompted appeals and ongoing debate. (AI Summary)
Whether company guest houses constitute renting of immovable property taxable as use in the course or furtherance of business, or instead qualify for exclusions such as purely residential use or exclusions for religious and non commercial educational bodies, determines service tax liability; administrative views conflict and a favourable High Court decision for the assessee has prompted appeals and ongoing debate. (AI Summary)