‘Renting’ has been defined in section 65B as ‘allowing, permitting or granting access, entry, occupation, usage or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property’.
What is a ‘residential dwelling’?
The phrase ‘residential dwelling’ has not been defined in the Act. It has therefore to be interpreted in terms of the normal trade parlance as per which it is any residential accommodation, but does not include hotel, motel, inn, guest house, camp-site, lodge, house boat, or like places meant for temporary stay.
Would renting of a residential dwelling which is for use partly as a residence and partly for non residential purpose like an office of a lawyer or the clinic of a doctor be covered under Negative List?
This would also be a case of bundled services as renting service is being provided both for residential use and for non residential use. Taxability of such bundled services has to be determined in terms of the principles laid down in section 66F of the Act.
Would the nature of renting transactions explained in column 1 of the table below be covered in this negative list entry?
|(i) a residential house taken on rent is used only or predominantly for commercial or non-residential use.||the renting transaction is not covered in this negative list entry.|
|(ii) if a house is given on rent and the same is used as a hotel or a lodge||the renting transaction is not covered in this negative list entry because the person taking it on rent is using it for a commercial purpose.|
|(iii) rooms in a hotel or a lodge are let out whether or not for temporary stay||the renting transaction is not covered in this negative list entry because a hotel or a lodge is not a residential dwelling.|
|(iv) government department allots houses to its employees and charges a license fee||such service would be covered in the negative list entry relating to services provided by government and hence non-taxable.|
|(v) furnished flats given on rent for temporary stay||these are in the nature of lodges or guest houses and hence not treatable as a residential dwelling|