is the company required to charge service tax on letting of parking area or on letting of furniture?
CA Sandeep Soni
(Chartered Accountant)
(55 Points)
Replied 05 August 2013
If the company having ST registration and if Co. already charging service tax on letting of parking area or furniture or on any other services then ST required to charged ST on letting of parking space or furniture.
If Co. having or not ST registration, and its not started charging ST on any of the Co. services then CO. can avail ST exemption up to Rs. 10 Lacs in year. That means upto 10 Lacs, Co not required to charged ST. On crossing 9 Lacs ST registration required and above 10 Lacs ST would be charged & payable.
The reply subject to review of detailed facts & cicumstances.
rajula gurva reddy
(Manager)
(420 Points)
Replied 05 August 2013
All the said services are taxable for Service Tax. However, exemption is available till the unti cross RS.10 Lakhs per annum. During the exemption period the unit should not collect the Service Tax. Inc ase, if the unit collects Service TAx, the same has to be paid to the Govt after obtainignRegistration with the Central Excise department. Otherwise, till the unit cross RS.10 Lakhs, there is no necessity to obtain Registration also.
CAclubindia
