TaxTMI 
TaxTMI 
renting of immovable property
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....enting of immovable property<br> Query (Issue) Started By: - Ramachandran and Ramachandran Associates Subramanian Dated:- 30-1-2013 Last Reply Date:- 31-1-2013 Service Tax<br>Got 1 Reply<br>Service Tax<br>Our client is a partnership firm in ownership of a hotel at Mangalore. This hotel is leased to another individual on a monthly rent of Rs.2 Lakhs. The lessee is letting out rooms on daily rent an....
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....d the declared tarrif is less than Rs.1000 per day. I would like to know whether my client would be liable for service tax on the rent collected since renting of Hotel is exempted vide Exemption notification no. 25/2012 ( Enrty Sl.No.18). What would the scenario be if the declared tarrif is Rs.1000 or more. Can my client avail abatement of 60% of the value of taxable services rendered by him? Rep....
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....ly By sanjeev bajaj: The Reply: The case cited above may have different opinions, such as:- 1. Simply, it can be treated as renting of commercial property as the service providers is not giving services of hotels etc, , hence no declared tariff and not covered under exemption. 2. There is no specific exemption as in the case of services by the specified exemption as per entry 29 of the mega ex....
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....emption vide notification no. 25 dt. 20.06.2012. like to sub contractor if he provides to contractor whose services are exempt. 3. However, in my opinion, it is covered under entry no. 18 of mega exemption. If we read bold portion of entry no. 18 as follow:- Services by way of renting of a hotel, inn guest house, club, campsite or other commercial places meant for residential or lodging purposes....
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...., having declared tariff of a unit of accommodation below rupees one thousand per day or equivalent; In your case, the owner has:- I. Leased the commercial place II. Meant for residential or lodging purpose III. having declared tariff value of a unit below Rs. 1000/- which fulfills the requirement of entry 18 of the mega exemption. Sanjeev Bajaj<br> Discussion Forum - Knowledge Sharing ....