Use of part of residence for business

I am the owner of a residential flat in Pune. I have given a room of my house to a friend to use as his office for his proprietorship TRADING and CONSULTANCY business - for which I am not charging any rent. I am assisting him in his business, though I am not a partner. The business does not cause any noise pollution and there is no one else who works in the business currently, besides the two of us. No goods are stored here and no inventory kept except for some demonstration units which are stored sometimes. No visitors. All business carried out via laptop. So it is basically an office, with no visitors or other employees. He has listed this office address for his Shop Act License and hence this will become his official address for the business. What are my liabilities in this case - as owner of flat from where business owned by someone else is run Should I take permission from my society for allowing him to use this as his business address? Am I liable to pay commercial property tax rate for this property? Am I liable to pay electricity rate at commercial rate for this kind of business? Kindly advice.