Hospital buliding - commercial activity

[Balasubramanian Natarajan]

A Doctor who owns a Hospital is planning to let out the Hospital buildings including the Equipment, Apparatus, Furniture fittings, X ray Scanning and clinical equipments to another doctor, The hospital will treat out patients and in patients The following questions emerge: 1.Can Hospital be covered under the exclusion clause (d) Building solely used for residential purposes and buildings used for the purposes of accomodation. 2.Can the activity of running an Hospital be called a Commercial activity and hence the letting out is to be treated as for furtherance of commerce. 3.Can we exclude the rental value for Equipments, Apparatus etc as thses are fixed in some cases cand not so in few cases.Een thgose fixed care capable fro removal withput any damage. Shall look forward to have views from others

AI Summary

Doctor Leasing Hospital Buildings: Residential or Commercial Use? Equipment Rental Excluded from Service Tax. Separate Agreements Advised. A doctor plans to lease hospital buildings, including equipment and furniture, to another doctor for treating patients. Key questions include whether the hospital qualifies as a building used solely for residential purposes, if running a hospital is a commercial activity, and whether rental value for equipment can be excluded. The response clarifies that hospital premises likely don't qualify as accommodation, but rental income from movable assets isn't subject to service tax. It suggests creating separate agreements for assets to avoid complications if rental values are artificially adjusted.