Service Tax on Rent from Commercial property

This query is : Resolved

Rahul Sharma (Querist)
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10 October 2010
X & Y purchase the Commercial Building on their joint name and lease the same to ABC Ltd. for 10 years.

Case 1 Lease rental received from ABC Ltd is Rs.18 Lacs (share of X & Y is Rs.9 Lacs each)

Case 2 Lease rental received from ABC Ltd is Rs.18 Lacs (share of X & Y is Rs.12 Lacs & 6 Lacs respectively)

Case 3 Lease rental received from ABC Ltd is Rs.18 Lacs (share of X & Y is Rs.9 Lacs each but the X is CA and he is already registered with Service Tax)

Kindly advice, if the Lease Agreement evidently mentions their Rental share

Question

1. Whether there is require for Service Tax Registration for X & Y.

2. Whether we will call the X & Y Deemed AOP.

Thanks & Regards

Rahul Sharma

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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11 October 2010 where an individuals taxable services exceeds 10 Lakhs then only liable.
Rental of IP taxability itslef is in doubt with Delhi HC staying. Revisit requirement to pay .