Dear Members
One of my friend is having TWO immovable properties. One is purely rented out for residential purpose and the another is purely rented out for commercial purpose. There is no partial use of residential and commercial in both the buildings.
He is receiving rental income from both the properties -
Rental Income from residential property is around Rs.4.00 lacs per annum.
Rental income from commercial property is Rs.12.00 lacs per annum. This 12.00 lacs includes maintenance charges, water charges....etc.
I request the members to advise me the following:
(1) There is an 10.00 lacs exemption limit for small service providers. In my case the said ten lacs exemption limit would be crossed only in the month of February every year. In view of the above, how to collect service tax from the tenants - whether to collect service tax for whole year or for the month of February and March alone.
(2) Whether rental services from both the properties would come under the purview of service tax act. (Note : This doubt arises because my friend has two propetires - one rented out exclusively for residential and one rented out exclusively for commercial. )
(3) Whether maintenance charges and water charges collected would come under the purview of service tax
with regards
Muralidharan
CAclubindia
