The Governor of Tamil Nadu has issued a clarification on the exemption from the prescribed state tax for intra-State supply of services by way of renting of residential dwelling for use as residence. The notification was issued on 30th January, 2023 and is deemed to be effective from 1st January, 2023.
The present notification amends the Commercial Taxes and Registration Department notification dated 29th June, 2017. The notification clarifies that this exemption covers services by way of renting a residential dwelling to a registered person in the following circumstances:
(i) the registered person is the proprietor of a proprietorship concern and rents the residential dwelling in his personal capacity for use as his own residence,
(ii) such renting is on his own account and not that of the proprietorship concern.
Further, the notification omits the exemption that was previously extended to services by way of access to a road or a bridge on payment of toll charges.