Service tax on hostel provided to students (Not an Educational Institution)

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..... Dear Sir, I have got an opportunity to run a hostel for students, for which i have to take few houses on rent and accomodate the students (4 to 6 in a house) after furnishing. Rent paid for the house will be around ₹ 27000 per month. Rent collected will be around ₹ 12,000 per student. Need to know whether can i avail exemption under notification No.25/2012 dt. 20.06.2016 as the ren .....

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..... t collected per student is around ₹ 400 per day which is less than ₹ 1000 as mentioned in the notification. Also food fees can be charged at ₹ 3000 per student in addition to the above. Food is to be prepared and provided in the institution in which they study. Need to know whether food component attracts service tax. Thanks in advance. - Reply By KASTURI SETHI - The Reply = .....

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..... Sh.Alagappan Ji, Does the rent of ₹ 400/- worked out by you is per room per day ? Catering is taxable. - Reply By Muthuraman Alagappan - The Reply = Yes. Rent collected per month is ₹ 12,000. Therefore for 30 days, it works out to ₹ 400 per day. - Reply By KASTURI SETHI - The Reply = Dear Sir, In my view exemption in respect of serv .....

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..... ice, namely, Renting Of Immovable Property Service is admissible. Now the most crucial point is 'Consideration' of both services must not clash. Books of accounts i.e. Invoice book, bank statement etc. must be fool-proof. - Reply By Ganeshan Kalyani - The Reply = Sir, nicely replied by Sri Kasturi Sir. Thanks. - Service tax on hostel provided to students (Not an Educational Institution .....

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..... ) - Query Started By: - Muthuraman Alagappan Dated:- 16-6-2016 Service Tax - Got 4 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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