i am proprietor of a company.i am taken service tax registration number against my company name.i am receive rent in my personal name.so how i calculate service tax?
2 Replies
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 22 January 2016
- Though the income is credited to your personal bank account, you can still account the rental income in the books because proprietor's account gets merged with the books.
- If the rental income pertains to commercial property, then you need to charge ST @ 14% + SBC @ 0.5% upon crossing the threshold taxable service of Rs.10 lacs. But if the property rented out is for personal purpose, then there is no need to charge ST as it is exempt.
Nagendra Hegde
(Chartered Accountant)
(1948 Points)
Replied 22 January 2016
In addition, You could adjust the proportionate property tax paid for the period before charging service tax on the rental income.-29/2012- ST
However once tax is collected, it has to be deposited with the government.
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