narendra khandelwal (service) (204 Points)
24 July 2008will service tax will be levied on sub-rent received?
for eg. ABC co takes a building on rent basis and partly sub let out to other co.will sub rent received by ABC co will be chargeble to service tax. on what amount service tax will be levied i.e. on net rent ( Rent Receivde-Rent Paid) or Gross Rent Received.
if yes,are there any abetments or deduction allowed?
ABHISHEK RANKA
(Article)
(20 Points)
Replied 24 July 2008
sub rent can be taken as normal as secendory income and which is not as a business of giving on rent. so it may not be chargeable for service tax.
ABHISHEK RANKA
TARA & MURTHY CA
BANGALORE
narendra khandelwal
(service)
(204 Points)
Replied 24 July 2008
Hi Abhishek
is there any decision,circular or notification regarding non taxability of sub rent income under service tax
CA Hemant T Dewani
(Chartered Accountant)
(3356 Points)
Replied 24 July 2008
service tax is applicable if you are subletting the property the gross amount is chargable under service tax if your gross rent is in excess of rs 10 lakhs then you will charged service tax you will get cenvat credit/input credit against you out put service tax
GOPALA KRISHNA TUMMA
(Manager - Commercial)
(38 Points)
Replied 29 July 2008
Hi CA Prasad
Yes, Hire charges are taxable
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