Commercial Property on Rent

This query is : Resolved

Ulaganathan (Querist)
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01 November 2007 We are paying Rs.70000/- rent to our landlord. This property owned by hunband and wife on 50:50 basis. In this case service tax registration is required or not? Please clarify.

Ulaganathan

KAAPIL

KAAPIL (Expert)
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01 November 2007 Service Tax on commercial premises have a stay order by High Court.

R.V.RAO

R.V.RAO (Expert)
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01 November 2007 SRI KAPIL THAKORE IS PERHAPS REFERRING TO THE RECENT HON'BLE CHENNAI HIGH COURT INTERIM INJUNCTION GIVEN IN FAVOR OF A PARTICULAR PETITIONER WHO GOT THAT TEMPORARY INJUNCTION ON SERVICE TAX LEVY TILL 22 ND OCTOBER 2007 AWARDED BY HON'BLE CHENNAI HIGH COURT WHICH WAS REPORTED IN OUR CACLUB INDIA FORUM.
THE ISSUES RAISED BY CHENNAI HIGH COURT WAS THAT PROTERTY(TAX ON RENT WAS DEEMED AS TAX ON PROPERTY) TAXING IS A MATTER OF STATE SUBJECT WHICH CENTRE CANNOT DO.
IAM AFRAID THAT IS A PARTICULAR DECISION GIVEN FOR PARTICULAR PETITIONER.
I ALSO AM NOT AWARE WHAT HEPPENED AFTER 22 ND OCTOBER 2007,WHETHER THE INTERIM INJUNCTION WAS LIFTED OR CONTINUED TILL FINAL DISPOASAL OF THE PETITION.
BEFORE THIS CASE NAGPUR OR MUMBAI HIGH COURT HAS REFUSED TO GIVE A STAY ON COLLECTION OF SERVICE TAX.BUT IT WAS ADVISED WHATEVER WAS ALREADY COLLECTED NEEDS TO BE DEPOSITED.THE ISSUE RAISED BY THE HON'BLE COURT IN THIS CASE WAS THAT WHEN PROPERTY IS LET OUT , FOR OCCUPYING FOR A CERTAIN PERIOD,THERE IS NO SERVICE RENDERED AND APPLICABILITY OF SERVICE TAX WAS A MATTER WHICH NEEDS TO BE DECIDED.
BUT IT IS TRUE THAT NEW SERVICE TAX REGISTRATIONS MAY NOT BE VENTURED NOW AT THIS MOMENT.
COMING TO YOUR QUESTION THE EXEMPTION LIMIT OF SERVICE TAX IS RS. 8 LAKHS P.A,AND THRESHOLD FOR REGISTRATION UNDER SERVICE TAX ACT IS RS. 7 LAKHS.
THE NAME OF PROPERTY OWNER WHICH FIRST APPEARS ON THE PROPERTY REGISTRATION DOCUMENT NEEDS TO REGISTER UNDER SERVICE TAX ACT AS AND WHEN AND IF AT ALL THEY DECIDE TO REGISTER THEMSELVES UNDER THE ACT.
R.V.RAO

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