Letting of house property

This query is : Resolved

rahul gupta (Querist)
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15 March 2013 Sir,
If an Individual let out his house property for furtherance of business n commerce to a tenant. considering rent as house property income whether the owner is liable to charge service tax on the same income?

Sumit Grover

Sumit Grover (Expert)
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15 March 2013 Yes, the same shall be taxable.
Assuming that the individual has let out his property from FY 12-13 for the first time & he is not providing any other service, then Service tax shall be levied only on the amount in excess of Rs. 10 Lakhs during the current FY.
Even if the individual was providing teh service last year(the above mentioned threshold limit shall continue to apply, provided his turnover, had not exceeded Rs. 10 Lakhs during last FY)