Service tax applicability on letting out business

[Sarwan Agarwal]

Dear Sir, My client has taken a residential house on rent. He is using the house for letting out to his clients on monthly or weekly basis. What is the liability of Service Tax in this case and who is liable for to pay the owner of the house or my client. Regds

AI Summary

Service Tax Liability on Subletting: Residential Use Exempt, Non-Residential Use Triggers Tax for Both Parties. A client rents a residential house and sublets it to clients on a monthly or weekly basis. The query concerns the applicability of service tax and who is liable-the owner or the client. One participant suggests that if sub-letting is for non-residential purposes, both parties are liable for service tax. Another participant questions this, citing an exception for properties used solely for residential purposes. The discussion clarifies that if the property is used for non-residential purposes, service tax is applicable, but not if used solely for residential purposes.