S t on rental

This query is : Resolved

santhosh (Querist)
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10 February 2014 1) my client has purchased one property for
his name and receiving rent 50000-00 p m

2) Again he has purchased another property
for him and his wife (her contribution is
nil)and sharing rent 25000+25000 each

Now whether he liable to pay service tax ?
its rented for Paying Ghuest (PG) and 3 shops

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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10 February 2014 Hi,
Rented to PG amounts to residential dwelling for use as residence which is covered under negative list hence No Service tax.

When it comes to 3 shops if the rent from 3 shops for the year exceeds 9 Lakhs then ST registration to be obtained and after 10 lakhs rupees of rent the Service tax to be charged.

Please clarify whether the sale deed of the documents mentions about the sharing or it is just a mutual understanding?