Building on rent query related to constitution

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2015 WE HAVING ONE CLIENT WHO GIVEN BUILDING ON RENT TO THE NATIONALIZE BANK.THE RENT RECEIVED BY HIM TILL DATE IS 9,50,000 ON NEXT MONTH HE WILL CROSS THE 10,00,000 RS.SO HE IS APPLICABLE FOR THE SERVICE TAX.NOW PROBLEM IS THERE ARE TWO FAMILY MEMBER ARE ON PAPER OWNERS OF THIS BUILDING.ON THE NAME OF BOTH OWNERS THE REGISTRATION WILL BE MADE.BUT IN THIS CASE WHAT WILL BE THE CONSTITUTION FOR PARTNERSHIP OR OWNERS.PLEASE REPLAY FOR SAME ..ADVANCE THANKS TO THE EXPERTS TEAM

CA Parveen Kumar

CA Parveen Kumar (Expert)
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18 February 2015 in this case the the building provided on rent by two person (two separate entity) to one organisation via one rent agreement. There is two service provider (owners of building).

In this regards first of all you need to clarify, hows bank making rent payment.

If bank making payment to both of the owners of building then no service tax applicability will arise in your case because the exemption of rs. 10 lakh will be available for each owner.

Querist : Anonymous

Querist : Anonymous (Querist)

18 February 2015 one more query related to this matter.service tax is calculated on gross amount before tds or after the deduction of tds.on which amount service tax is applicable.

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