# Exemption: Renting and Leasing Services
## 1. Renting of Residential Dwelling for Use as Residence
Exempt if the residential dwelling is rented:
- To an unregistered person, OR
- To a registered person — but only if that person is a proprietor taking it on rent for his own residence (not for the business).
> Warning: When rented to a registered person for business use / company-provided accommodation → Taxable under RCM (recipient pays).
## Hostels, PG, Camps, Student Residences
General rule: Accommodation services by hostels, camps, PGs and student residences are Taxable (do not enjoy the residential-dwelling exemption).
Exception (Exempt) — both conditions must be satisfied:
1. Minimum continuous period of 90 days, AND
2. Value is up to ₹20,000 per person per month.
## 2. Upfront Amount on Long-Term Industrial Lease
Exempt is the upfront amount (called premium, salami, cost, price or by any other name, including preferential location charges) paid in one or more instalments for long-term lease of at least 30 years of:
- Industrial plot, OR
- Plot for developing financial business infrastructure
Conditions:
- Recipient: Industrial unit or developer in an industrial / financial business area.
- Provider: State Government industrial development corporation/undertaking (e.g., MIDC, RIICO) OR an entity in which CG/SG/UT has at least 20% ownership.
## Decision Tree — Residential Renting
```
Is the property a 'residential dwelling' used as residence?
- No -> Taxable
- Yes -> Recipient unregistered? -> Exempt
Recipient registered? -> Proprietor for own residence? -> Exempt
Otherwise -> Taxable (RCM)
```