9911796707
TMI Blog2018 (10) TMI 1875X X X X Extracts X X X X X X X X Extracts X X X X ..... ting the property, though with a condition that it can be sub-letting only for residential purpose - It is the second Lease agreement (Sub-Lease) which is between the applicant and the actual user of the property which is for residential purpose. This agreement, to our understanding qualifies under service code 997211(Rental or leasing services involving own or leased residential property) and falls under the said entry 12 of the notification in question - The First Lease agreement between the owner and the applicant, at the most can be termed as property management services falling under service code 997221. The third Lease relating to services is rightly understood by the applicant as taxable and hence out of the purview of the said entry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to the tenant. (c) Currently, Applicant is Charging GST only on amount charged by them against the Amenities provided to Sub-Lessee. The Applicant is not charging GST on Amount Charged for Sub Leasing Out Residential Dwelling Unit. 2. Question on which advance ruling is required: - Whether the Residential Dwelling Unit taken on Lease from Various Individuals/Owners for Sub Leasing the same Residential Dwelling unit to Corporates as well as Individuals for Residential Purposes along with various amenities such as Furniture, Appliance, Cleaning, Security, Pest Control, AC Service etc. is Exempt Supply as per the Entry No. 12 of Notification No. 12/2017- Central Tax (Rate) dated 28th June 2017 (Copy of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts as presented by the applicant it is understood that the applicant enters into lease of residential dwelling units with the property owners and further sub-leases these dwelling units to various individuals/corporates for residential purposes along-with various amenities such as, provision of housekeeping services, DTH connection, Gas pipeline or cylinder, broadband facility, drinking water in Jars/ bottles, pest control etc. (b) For a better understanding of the issue raised by the applicant, the business of the applicant can be understood to be falling into three segments as under: (i) The applicant enters into lease agreements with the owners of residential units for a fixed period, generally for 22 months at a fixed mont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice code 997211 (Rental or leasing services involving own or leased residential property) dealing with the issue in hand need to be understood in it's true sense. (e) it is understood that the First Lease agreement between the owner and the applicant is in the nature of only a right given to the applicant for further sub-letting the property, though with a condition that it can be sub-letting only for residential purpose. (f) It is the second Lease agreement (Sub-Lease) which is between the applicant and the actual user of the property which is for residential purpose. This agreement, to our understanding qualifies under service code 997211(Rental or leasing services involving own or leased residential property) and falls under th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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