KOCHI: Commercial tax cannot be levied on a residential building rented out for residential purposes, the Kerala High Court has held.
The ruling was given by justice Shaji P Chaly after considering a petition (WP-C No. 30074/2016) filed by PK Shanmughan of Kodungallur through advocate AA Ziyad Rahman. The petitioner had challenged the demand for higher tax by the revenue authorities by stating that renting out a residential building amounts to commercial activity.
