Service Tax on Rent

This query is : Resolved

Vijay Mishra (Querist)
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12 September 2009 Dear All

We were using a rental office for the F.Y. 2008-09 @ Rs. 440/- per month in Chawri Bazar, Delhi -06 . In whole year we have paid to the landlord a sum of Rs. 5280/-. Now the landlord in insisting to pay the service tax @ 12.36% on Rent for the above period. Are we liable to pay service tax or not?????

Please let us guide at the earliest.

With best regards,

Vijay Mishra

Kapil Arora

Kapil Arora (Expert)
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13 September 2009 Yes u r liabile to pay service tax if your land owner exceed the limit of Rent Recieved as per Finance Act, 1994(As Amended by Finace Act, 2009) i.e Rs 10,00,000/- from all property kkk