Is Service tax applicable for working women Hostel

[Guest]

One of my friend runs a working women hostel and he was trying to find if he should register it somewhere or should he pay any ST or other taxes apart from IT which he already does for the hostel. Any help on how to register the hostel for ST and what category it comes under for taxation ?

[CA Rachit Agarwal]

As it appears that the hostel is purely engaged in providing the residential accomodattion to working women.

As the complex is being used for the residential purposes, hence the same would not come within the ambit of Service Tax. Services so rendered would not be taxable under Renting of Immovable Property.

[DEV KUMAR KOTHARI]

I agree with  Rachit Agarwal about rent. however, check if  any other service  rendered falls under  taxable catagories of services.

AI Summary

Residential accommodation exemption: working women hostels treated as non taxable renting of immovable property, but check other taxable services. Providing residential accommodation to working women in a hostel used for bona fide residential purposes falls outside the scope of Service Tax and is not taxable as Renting of Immovable Property; however, any ancillary services provided in addition to pure residence should be separately assessed for potential service tax liability.