Service tax on rent
This query is : Resolved
31 December 2015
Is that service tax is levied on rent,, plzz answer
01 January 2016
yes service tax is leviable on rent however negative list covers renting of residential house for residential purpose hence no st is applicable in such case moreover renting of any place for residential purpose like hotel room is exempted upto the portion of 40%
01 January 2016
Renting is allowing, permitting or granting access, entry, occupation and usage of such facility in an immovable property with or without the transfer of the possession of control.
Residential dwelling is any residential accommodation but does not include hotel, motel, inn, guest house, camp-site, lodge, houseboat, or places meant for temporary stay.
There is no service tax charged on renting of immovable property for residential purpose. Service tax is not applicable to any amount that is refundable and collected from the tenant as security or rental deposit. The non-refundable deposit will be subject to service tax.
Maintenance charge towards the building is subject to service tax. The tenant is liable to pay the service tax. It is the land owner’s responsibility to collect the tax amount from the tenant and remit it to the department.
Service tax is mandatory to be paid if the total value of the services provided by the service provider exceeds the threshold level of exemption is up to Rs.10 lakhs per annum.
If the total value of the services provided by the service provider is less than Rs.10 lakhs per annum, then he is not liable to pay the service tax.
Residential dwelling is any residential accommodation but does not include hotel, motel, inn, guest house, camp-site, lodge, houseboat, or places meant for temporary stay.
There is no service tax charged on renting of immovable property for residential purpose. Service tax is not applicable to any amount that is refundable and collected from the tenant as security or rental deposit. The non-refundable deposit will be subject to service tax.
Maintenance charge towards the building is subject to service tax. The tenant is liable to pay the service tax. It is the land owner’s responsibility to collect the tax amount from the tenant and remit it to the department.
Service tax is mandatory to be paid if the total value of the services provided by the service provider exceeds the threshold level of exemption is up to Rs.10 lakhs per annum.
If the total value of the services provided by the service provider is less than Rs.10 lakhs per annum, then he is not liable to pay the service tax.
01 January 2016
thank uu so much friends...
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Applicable TDS rate for sale of property in Nov 2024
- RCM INVOICING FROM NOV-2024
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
CAclubindia
