Renting premises for set off

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Ankit (Querist)
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08 May 2012 my sister in law has a SOP which she wants to rent it to my brother's proprietorship firm. Also, my brother has a commercial gala which he wants to give on rent to that firm itself. They are providing architects services and are registered for the same service in the service tax dept.

What will the service tax implications for the FY 11-12? Will they both have to get registered with ST dept for the service?

Further, till now my sister in law was an employee there in FY 12-13 she will become partner in the firm and the premises will be on rent with the firm. What shud i suggest them for taking set-off the service tax they get?

prasad

prasad (Expert)
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08 May 2012 HEY F.Y.11-12 HAS COME TO AN END.
PLEASE THINK OF F.Y.2012-13.
BOTH THE SPOUSES HAVE TO GET REGISTERED WITH SERTVICE TAX DEPARTMENT. GET SERVICE TAX NUMBER AND PAY THE SERVICE TAX @12.36% ON RENT RECEIVED. SERVICE TAX HAS TO BE PAID QUARTERLY AND FILE THE RETURNS SIX MONTHLY BASIS. FOR DETAILS REFER SERVICE TAX ACT.