Service tax question

444 views 3 replies

xien

135 Points Joined May 2009

I am director of my pvt limited company (software). We have leased some office space.

Sometime for a long period of time office workstation is not used.

I am planning to rent out workstation for short duration of time in personal capacity.

do I have to deduct any service tax for this rental business? (note i have salary from the pvt company. plus i have FD interest income above 10 lakhs yearly).

Or I can just rent out and show this income as my personal income?

Replies (3)

Manoj Agarwal

Service Tax Consultant Rourkela Service

3456 Points Joined March 2012

Dear Sir, As per my understanding of your query, the workstation is owned by your company, so the rental income from it cannot be shown as your personal income. So, if the company's aggregate taxable services exceeds Rs. 10 Lakh, then service tax should be collected and paid to the central govt. You may e:mail me the complete details for further clarifications. Regards, tax2001-it @ yahoo.com

xien

135 Points Joined May 2009

Manoj,

Thanks for the reply. Company have revenue more than 50 lakhs. But all revenue is from export of services (received in dollar). Hence no service tax so far. Still do company has to charge service tax from this small rental business?

regards,

TKKKKKK

PRACTICING CA

3272 Points Joined June 2010

you have provided only export service, it is exempt.So if you have not provided other taxable services,you should not charge service tax on rental income.(upto 10 lakhs)