Mr.X & Mrs.X are joint owners of a property. They are letting the property on lease. The lease rent exceeds Rs. 10 lakhs p.m. Therefore service tax is very much applicable. In the lease agreement , the payment conditions are in Mr.X's name.i.e. the lease amt is to be paid to Mr.X.
QN.1. They want to amend the payment conditions as to 50% payment to Mr.X and the other half in his wife's name. In order to amend the contract , what are the procedures to be followed. the agreement was registered. Should the amendment also be made in consultation with the regis of co.
QN.2. If the payment is made in both their names then service tax will not be applicable as the payment wouldnt exceed the S.T ceiling amount (10 lacs now). Is it correct if S.T is not charged.
QN.3. What could be the possible reason for the lessor to request for such variation in the mode of payment. If it is for tax evasion, will not clubbing provisions apply??
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