Breif Issue :
FACTS AND ISSUE OF THE CASE
Applicant is engaged in business of provision of services by way of leasing of residential units for use as residence to tenants. It sought advance ruling on whether leasing of property for use as residence along with basic amenities would qualify as composite supply under section 2(30).
The Applicant has provided a detailed explanation as to how the supply of renting along with basic amenities such as security, maintenance and housekeeping services provided as a comprehensive package are naturally bundled in the ordinary course of business
The Applicant is also engaged in provision of services of leasing of residential units to other service providers who are engaged in subletting the residential unit for use as residence
DECISION
The applicant is not leasing/renting a residential dwelling on whole but is leasing/renting individual bed rooms to occupants and hence, applicant’s service does not qualify to be a 'renting of immovable property' service as property leased or rented is not a residential dwelling, but amounts to provision of accommodation as 'roomig house'.
Thus, leasing of property for use as residence along with basic amenities in instant case is covered under accommodation services and falls under SAC 996311 and hence would qualify as composite supply under section 2(30).
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