Service tax on renting of residential property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 December 2012 If an individual is giving his house on rent, then there is no service tax on renting for residential service. Suppose the individual charges Rs 70000/- p.m. as rent and apart from it Rs 50000/- p.m. for lift, parking, computer, garden and water supply. Now firstly the rent is out of purview of service tax. Secondly since the amount received for other services is less than Rs 10 Lacs in a year, there is no service tax liability on the individual (landlord). Is this contention correct or not?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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11 December 2012 Yes.. this contention is correct since renting of residential property is not taxable service and accordingly, turnover of taxable services does not exceed Rs. 10 lakhs

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