Liability of Service tax - renting of immovable property

[Guest]

A ltd company had purchased a big house for providing rent free accomodation to one of its key employee. few months back the house has been vacated by that executive and the company has let out its rooms to bechlors @Rs8000/- per month (inclusive of fooding, air conditioned fully furnished rooms on twin sharing basis. there are 6 rooms and if remains occupied throughout the year gross receipts comes Rs.1152,000/- my query is whether service tax is atracted and whether any other kind of registration iis required for carrying out such an activity.

[Surender Gupta]

Currently, your service is not laible to be taxed under the service tax.

AI Summary

Company Renting Rooms to Bachelors Not Liable for Service Tax; No Additional Registration Needed, Per Current Guidelines. A company purchased a house to provide rent-free accommodation to a key employee. After the house was vacated, the company began renting out rooms to bachelors at Rs. 8,000 per month, including amenities like food and air conditioning. With six rooms, the potential annual gross receipts are Rs. 1,152,000. The query concerns whether this activity attracts service tax or requires additional registration. The response indicated that the service is currently not liable for service tax.