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Ramesh kumar (na)     11 December 2013

Serice tax on company residence for employees

I have given rented out two flats to a company XYZ Ltd. for exclusive use as residential purpose of their employees. This is also mentioned in the rent agreement. I have some other commercial property from which I am receiving rent and paying service tax. The service tax officer is now saying that I have to pay service tax on rent of these two flats from this company as the company(tenant) itself is a commercial concern. So indirectly it is used for commercial purpose. Please advice ?



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