Old age home/care homes, Service Tax

[anish mital]

Will letting of old age homes or care homes be covered under entry (m) of 66 D of Finance Act 1994.

other relevant facts:

1. Cooking not allowed. food is served 3 times.

2. Personal attendant is available for needy.

3. Dinning facility is common for all.

4. washing Bathing common for two premises.

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

Liability to service tax depends on the fact whether the old age home or care home is maintained on charity or with commercial intent. If it is run on commercial basis then it will not fall under entry (m) of Section 66 D of finance Act. Normally a house which is let out for residential purpose cannot be considered as commercial purpose though the owner earns rent as income.

[PAWAN KUMAR]

Dear Sir,

The reply given by Sh.Rajagopalan Ranganathan is correct.

[MARIAPPAN GOVINDARAJAN]

Thanks to Shri Rajagopalan Ranganathan.