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Service Tax on Rental Income


 I am a salaried person. Apart from Salary ,I get Income from House Property, Rs. 20,00,000 (Lakhs)  per Annum.Out of which, Rs 18 Lakhs is from Property Let out for Residential Purpose and the balance Rs 2 Lakhs fromproperty let out for Commercial Purpose.

Do I have to register for Service Tax. Do I have to collect Service Tax on Rental Income from House Property and remit the same to Service Tax Treasury ??

 
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Chartered Accountant


Renting of residential house is not taxable while renting of commercial property is liable to tax. Since rental income from commercial property is less than Rs.10 lakhs , the basic exemption , your are not liable to service tax.


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Originally posted by : Unnikrishnan Nair N

Renting of residential house is not taxable while renting of commercial property is liable to tax. Since rental income from commercial property is less than Rs.10 lakhs , the basic exemption , your are not liable to service tax.

agreed with the above


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Your taxable reciepts do not cross the basic exemption limit of Rs. 10 Lacs, hence you are not required to pay service tax.

 

Originally posted by : jyothi

 I am a salaried person. Apart from Salary ,I get Income from House Property, Rs. 20,00,000 (Lakhs)  per Annum.Out of which, Rs 18 Lakhs is from Property Let out for Residential Purpose and the balance Rs 2 Lakhs fromproperty let out for Commercial Purpose.

Do I have to register for Service Tax. Do I have to collect Service Tax on Rental Income from House Property and remit the same to Service Tax Treasury ??

 
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i get rental income of rs 1 lac per month from two properties one of them is commercial property leesed to muthoot fincorp and other is residential building co owned and rent out an institute and they use it for hostel purposes. so do i have to pay service tax on 12 lacs or four lacs. and can iask my tenants to pay it.

 
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off late is the Service tax has been exempted for Commrcial Properties....? 

is their any case service tax has to paid by tenant or landlord....?

 
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Padma sir, liability to pay service tax under Renting of Immoveable property is on the service provider thus it is landlord's liability and not of the tenant.

 
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most of the Retaillers are resuing to pay Service tax as it has become a additional out go interms of Rentals payable....and subsequently Landlords are also having problems in paying the service tax as they are paying Property tax, Income tax on the rent recivables.....Now Most of the Retaillers stating that they have fillied a case to get exemption on service tax.....is it true.....do you have any status on this...?

Naidu

 
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The matter is sub-judice and seems to tilt in the favour of the department. There is no way out for the retailers, they will have to pay tax. As far as valuation of the property, the amount of property tax paid will be allowed as exemption, the landlord has to pay service tax on the differential amount net of property tax

 
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