Renting of immovable property

This query is : Resolved

JAYAKUMAR.M.G

JAYAKUMAR.M.G (Querist)
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06 March 2013 Sir
One of my client paying Rent for their branch office @ Rs 21000/P.M.In such a case whether Service tax is applicable? If applicable who will bear the Service tax and how it is to be paid?. Whether any credit /abatement is eligible?please advice

CA Mahavir Shah

CA Mahavir Shah (Expert)
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06 March 2013 If the person to whom rent is paid has such income exceeding Rs.10 Lac than he need to collect & deposit service tax.

So if owner of property does not have income from such activity more than Rs.10 Lac he need not collect Service Tax.

It has to be borne by Payer i.e. your client.

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