Anand B (O) (25 Points)
17 March 2010Hi guys,
I have a question about service tax on rental income. Recently i bought 2 properties and they are on rent of 2,34,000 and 49,500 per month each.
So how much service tax must be charged and do i collect it from both tenants? Also what other tax are applicable on rental income which either i have to pay or can be charged from tenant? Do you need any other details?
Thanks.
EKALABYA TALUKDAR
(SERVICE TAX CONSULTANT)
(666 Points)
Replied 17 March 2010
.
Presently ST =10% + 2% Edu Cess on ST + 1% Hig Edu Cess on ST // Total = 10.3%
IF THE RENT IS MORE THAN 10 LAKH PER ANNUM
.
Pragnesh
(AM - Taxation)
(1259 Points)
Replied 19 March 2010
When your rental income corss exemption limit of 10 Lacs then you have start collecting ST from your tenant @ 10.30%. Income tax would be applicable. then you decide whether you have pay or your tanents will bear.
Anand B
(O)
(25 Points)
Replied 20 March 2010
| Originally posted by : Pragnesh | ||
 |
When your rental income corss exemption limit of 10 Lacs then you have start collecting ST from your tenant @ 10.30%. Income tax would be applicable. then you decide whether you have pay or your tanents will bear. |
 |
So do i charge both 10.3% service tax or just the tenant whose yearly rent goes above 10 lacs?
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