The Maharashtra AAR ruled on availability of exemption to renting of hostel facilities to students of a commercial coaching centre on optional basis.
The AAR using common parlance test ruled that such hostels are not residential dwellings based on the below reasons:
• guests are not allowed to stay in the hostel
• hostel is without any kitchen
• is meant for temporary purpose only
However, renting of such hostels may be exempt if declared tariff is less than Rs.1000 per day.
M/s Ghodawat Eduserve LLP
Comments