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

Service Tax on Rent

sankar ganesh armugam (PAID ASSISTANT) (29 Points)

14 July 2011

If service provider - A Partnership Firm has let out a building of two floors to a company, under two different agreements stating that first floor is for Business purpose and rent payable is Rs. 8,00,000/- P.M and second floor is for residential purpose of the company's employees for rent of Rs. 3,00,000/- P.M. Should the service provider needs to pay Service Tax on the amount Rent collected for let out of Second floor for residential purpose.

Reply
Follow
Share

5 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 14 July 2011

Originally posted by : sankar ganesh armugam
	If service provider - A Partnership Firm has let out a building of two floors to a company, under two different agreements stating that first floor is for Business purpose and rent payable is8,00,000/- P.M and second floor is for residential purpose of the company's employees for rent of3,00,000/- P.M. Should the service provider needs to pay Service Tax on the amount Rent collected for let out of Second floor for residential purpose.

8 Lacs pm is taxable ...........without any clarification

3 lacs is taxable if payee is company,

exempted if payee is employees in their individual capacity

Upgrade to CAclubindia Pro. Subscribe Now!

Ankit Bansal ( Sr. TAX Accountant) (42 Points)
Replied 14 July 2011

8 Lacs is Taxable

hitesh (Telecom Industry) (169 Points)
Replied 14 July 2011

the stay has been given by Delhi and Madras High court on rental of immovable property, so service tax may not be charged on business purpose also.. the matter will come on 19th july in Delhi High Court..