Service tax on rent of immovable property

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Avnish (Querist)
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05 November 2012 we have given our two different immovable properties on rent to two different parties, we are collecting rent them @ 100000/- p.m. and 15000/- p.m. from 1/4/2012.

When we will become liable to pay service tax and from when we shall also collect the same from the tenants?

@VaibhavJ

@VaibhavJ (Expert)
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05 November 2012 Hi

If in Previous Year you have not provided taxable value of Rs. 10 lac you are not required to charge Service Tax till you collect Rs.10 lacs.

Post 10 lacs you are required to charged ST on Rent amt p.m. less Muncipal Raxes pm.

Refer link for clarity:
http://www.simpletaxindia.net/2012/06/service-tax-on-renting-of-immovable.html

http://www.servicetax.gov.in/notifications/notfns-2012/st29-2012.htm

Thanks//Vaibhav
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Pradeep Nainawati

Pradeep Nainawati (Expert)
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05 November 2012 Is Property given on rent by you is used for Residence purpose by tenant?

Avnish

Avnish (Querist)
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05 November 2012 No, it is used by them for their business purpose only.

Avnish

Avnish (Querist)
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05 November 2012 Dear Vaibhav,

By referring the same, the total collection of rent is exceeding Rs. 10 lacs by december month by Rs. 35000/-.

Now at this point i am confused about, the collecting of the service tax from the tenant in December month on Rs. 100000/- & Rs. 15000/-, while the taxable amount is coming only 35000/-?

Pradeep Nainawati

Pradeep Nainawati (Expert)
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05 November 2012 No you have to charge on 35k only.
Just mention on your invoice the amount on which you charged ST.