Service tax on renting out a residential property
Narayan Subramaniam (Business) (38 Points)
11 March 2013Narayan Subramaniam (Business) (38 Points)
11 March 2013
Vikas
(CA)
(1135 Points)
Replied 11 March 2013
Renting of a residential house property for the purpose of residential dwelling would not attract Service Tax by way of negative list entry under Sec.66D(m) of the Act.
Manoj Agarwal
(Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com)
(3456 Points)
Replied 11 March 2013
Agree with Vikas Ji...
For Service Tax purpose, for your reference, quoting the said section 66D of the Finance Act, 1994,
(m) services by way of renting of residential dwelling for use as residence;
For Income Tax, higher of Gross Annual Value and Fair Value is taxable under the Head Income from House Property. Certain deductions are allowed like Interest on Borrowed Capital upto Rs. 1.5 Lakh.
Regards,
tax2001-it @ yahoo.com
Ashwini Degavinti
(Articled Assistant)
(21 Points)
Replied 15 November 2014
Can someone tell me if Service tax is applicable in the following case-
I have let out the ground floor and the First floor of my propety for some commercial use.(Rental Income is less than the threshold limit).
Now I want to let out the 3rd floor for RESIDENTIAL purpose.(Sec 66D(m) of the Negative list states that "Services by way of Renting of residential dwelling for use as Residence" is not taxable.
But my doubt is if I let out the property partly for commercial use and partly for Residential use ,then it shall be DEEMED to be immovable property for the use in the course of furtherance of Business or Commerce.
And now that the my Total Rental Income from all the 3 Floors exceeds the threshold limit (10lakhs). Will I be liable to register and Pay Service Tax.
Or all the 3 floors has to be considered as a separate property..??
Please Help,
Thanks & Regards
Ashwini Degavinti
Manoj Agarwal
(Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com)
(3456 Points)
Replied 17 November 2014
If you rent the 3rd floor of your building which is a residential dwelling and the same is to be used for residence only, then no service tax is applicable and the rent received from the same has to be ignored for calculation the threshold exemption limit of Rs. 10 Lacs.
Vinay Garg
(Service Tax Expert)
(780 Points)
Replied 17 November 2014
Originally posted by : Manoj Agarwal | ||
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For Service Tax purpose, for your reference, quoting the said section 66D of the Finance Act, 1994, (m) services by way of renting of residential dwelling for use as residence; For Income Tax, higher of Gross Annual Value and Fair Value is taxable under the Head Income from House Property. Certain deductions are allowed like Interest on Borrowed Capital upto Rs. 1.5 Lakh. |
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I agree.
kamlesh
(prop)
(39 Points)
Replied 08 July 2015
Manoj Agarwal
(Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com)
(3456 Points)
Replied 08 July 2015
@ Kamlesh No Service tax on both the transactions. For more clarifications, email me.
Regards,
Manoj Agarwal
servicetaxexpert @ yahoo.com
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