Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Renting of immovable property

CA kanika (JOB) (60 Points)

26 July 2012

dear all,

plz let me knw is service tax being required to pay on rent received from renting of immovable property. is there any basic exemption available or even on receiveing Rs1 one is required to pay service tax.

do reply

thanks

kanika gupta

Reply
Follow
Share

4 Replies

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 26 July 2012

Service tax needs to be charged if teh value of the services rendered duri9ng the eyar exceeds Rs 15lacs. Else ST need not be charged.

Upgrade to CAclubindia Pro. Subscribe Now!

CA kanika (JOB) (60 Points)
Replied 27 July 2012

dear giridhar,

the threshold hold limit is of 10lakhs, is it like dis is amended under the budget.

n i my case both service receiver and service provider hav service income below 10lakhs.

thanks

Ankit (Article) (91 Points)
Replied 28 July 2012

Hiiiiiiiiiiiii

Please help me out with this case

Suppose a property is owned by four persons and is let out for 33lakhs p.a. share of each co-owner is equal rent is equally divided.Now whether there is any ST liability on it .

Explain with legal provisions

RENGARAJ R.K (ADVOCATE) (7557 Points)
Replied 01 August 2012

If you divide the 33lacs income for 4 persons, the individual income is not crossing 9 lacs and hence all the four are exempted in registering under service tax. But, be sure that in the bank pass book the rental income is credited in the individual owners name.