Exemption in 'Renting of immovable property service'

[Guest]

as proposed in Budget 2007 about 'Renting of immovable property service' whether a hotel building given on lease against fixed lease rent will be exempt under the lines 'Residencial accommodation such as hotels, hostels.....'

[Surender Gupta]

No, a hotel building given on lease against fixed lease rent will not be taxable at all under the provisions of service tax.

AI Summary

Renting of immovable property - leased hotel premises not subject to service tax when lease is for fixed rent. A hotel building granted on lease against a fixed lease rent is treated as not attracting service tax liability under the Renting of immovable property service, so such lease arrangements fall outside the taxable ambit rather than being treated as a taxable hospitality service.