yashsr (CA) (2285 Points)
24 January 2014A Trust has rented out a property to the Income Tax Department. The rent was Rs.50000/- per month i.e. per annum Rent is Rs.6 lacs for which we need not register for Service Tax.
Now, for the 3 year period June 2010 to June 2013 Rent has been increased to Rs.125000/- per month which means Rs.15 lacs for the year. So the Trust will get the difference of Rs.9 lacs per year for 3 years i.e. Rs.27lacs plus Service Tax. When is the overall treatment under Service Tax and its liability?
Pradip
(Accountant/Management)
(106 Points)
Replied 24 January 2014
As your gross turnover does not exceeds 50 Lakh per annum you can pay tax on receipt basis i.e. when you received rental income service tax liability arises.
yashsr
(CA)
(2285 Points)
Replied 24 January 2014
| Originally posted by : Pradip | ||
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As your gross turnover does not exceeds 50 Lakh per annum you can pay tax on receipt basis i.e. when you received rental income service tax liability arises. |
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Is this 50 lac per annum clause also applicable to a Trust? I thought its only applicable to Individuals, Partnership Firms and LLPs.
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