Service tax on immovable property

[Guest]

dear all,

B has taken a residential property having 100 rooms on rent from A. B sublets that property to different persons.There is common kitchen,washing area,entertainment area etc.what is the applicability of service tax betwwn A & B AND between B & different persons.

[Surender Gupta]

Buildings used for residential purpose are outside the scope of service tax net. As long as property is used for the intended purpose, neither A nor B would  be lible to service tax.

[YAGAY andSUN]

As the building is not beign used for commercial purpose, therefore, service tax is not applicable.

[KASTURI SETHI]

UPDATION

At presentNotification No.6/2014-ST dated 11.7.2014 amending Notification No.25/2012-ST dated 20.6.12 (effective from 1.7.2012) is relevant in this context

AI Summary

Residential property service tax exclusion: rental and subletting of residential premises generally not subject to service tax. Rental of premises used for residential purpose falls outside the scope of service tax; charges for letting and subletting residential accommodation are not taxable as service tax so long as the property continues to be used for its intended residential purpose. A subsequent regulatory amendment to the notifications governing taxable and exempted services should be consulted for the current position.