Service tax on immovable prperty

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2011 Hello Friends

I have an query regarding service tax on immovable property.Our company is a manufacturing concern but it also rents some immovable property.Its turnover of rental income is exceeding 10lakhs my query is whether the limit for registration and tax point of view whether each immovable property is considered as separate or the limit is considered as a whole of all rental units.becoz our co. charges service tax on some rental buildings and on some not.

Plz reply soon......

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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31 August 2011 The limit is on the company as a whole, so it not only includes all the buildings but also any other taxable service provided by you.

CA Suresh Choudhary

CA Suresh Choudhary (Expert)
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31 August 2011 Agree with Ashwinji.Your company had to get the Service tax Registration no when the turnover exceeds the limit. Renting of immovable from all the property as a whole should be considered.

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Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2011 ok thanks for valuable suggestions also pls tell me whether is there any criteria that only renting of building for commercial purpose is liable for service tax?

CA Prashant Shrivastava

CA Prashant Shrivastava (Expert)
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31 August 2011 Fully agree with Ashwani ji, Plz also remember that taxable service includes exempt services too.

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2011 ok thanks for valuable suggestions also pls tell me whether is there any criteria that only renting of building for commercial purpose is liable for service tax?

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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01 September 2011 No there is no distinction between renting for commercial or residential purposes. Any kind of immovable property lending is liable to service tax.