18 February 2013
Is it necessary to take registration separately for each co-owners where no separate bill is issued and no separate agreement by each co-owner with the tenant exists? The gross rent received annually exceeds 10 Lakhs, but not so for each co-owner.
In the present case, the tenant is a big pvt ltd company having almost 100 rental agreements across the country. In every case, they are paying service tax on behalf of the building. Co-owners/landlords are not registered with the service tax. Is reverse charge mechanism applicable here?
18 February 2013
Owner of the property will pay the service tax on renting of immovable property. It will not fall under the reverse charge system. Recipient of services will not pay the service tax on renting of immovable property.
18 February 2013
does it mean that co-owners have to take registration individually or any other option? whether exemption is available in such situation?
CAclubindia
