Service Tax on Commercial Property

This query is : Resolved

Rahul Sharma (Querist)
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04 May 2010 Dear Sir/Mam

If I purchase the Property in the Joint Name and lease the same for Commercial activity and get the Total Rent of Rs.18,00,000/-.

Total rent distributed between the two ownerss of Rs.9lacs each.

Now the qestion is, whether the Service Tax Registration is require.

what is the impact if the Contract agreement is one and of Rs.18 Lacs.

kindly advice asap.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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04 May 2010 Since the property is jointly owned and the amount of rent does not exceed Rs. 9 lacs no need for service tax registration.

If the Contract agreement is one and of Rs. 18 Lacs then specific share of each of the joint owners must be mentioned in the agreement.