Company 'A' is engaged in the business of letting our residential houses. Company assessee 'B' received the residential houses from 'A' and let out the same to employees.
Whether letting out of residential houses by 'A' would be covered under Renting of Immovable Property used in the furthereance to the course of business?
Please provide the relevant case laws if any.
Residential Rentals for Employees: Service Tax Implications on Business Use of Properties Explained Company 'A' rents out residential houses to Company 'B,' which in turn provides them to employees. The query is whether this falls under 'Renting of Immovable Property' for business purposes and is subject to service tax. The response clarifies that renting for residential purposes is not subject to service tax, but renting for business purposes is. If the property is intended for residential use but misused for business, the landlord should take measures to avoid service tax and stamp duty issues. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
