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Service tax on rental income from commercial property

Queries 1040 views 3 replies

Durga Prasad

Trainee

392 Points Posted on 14 December 2013

If, A is a proprietor and he has a business income of Rs. 5 lacs, salary income of Rs. 3 lacs and have a rental income of Rs. 7 lacs. Is he liable to pay service tax ?

Replies (3)

Salman

Student

28 Points Posted on 14 December 2013

Sir, A small request. Why cant we form a forum for Service tax in whatsapp and so discuss our issues and amendments via mobile. Please do consider this.

Rohit Aggarwal

ACA Bcom (H) MBA MCom

470 Points Posted on 15 December 2013

Hello Durga

The assessee is not liable to pay service tax. Note the following:

Business income: If the business is of dealing in goods then ST not applicable.

Salary: Excluded from the definition of Service.

Rental Income: Exemption can be availed.

Thanks.

CA Mukesh Choudhari

xyz

153 Points Posted on 16 December 2013

rental income is exempt provided its for residential use. if it is used for commercial purpose then service tax is liable on it. if your business income is on account of providing of any service then it crosses the limit of 10 lakh accordingly you have to register and pay service tax on above