Home loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2012 Pls can u help tell me if service tax is applicabke for giver or receiver of rental income. Is there a limit to the service tax. Can there be exemption of rental income against interest of home loan?

Nilesh

Nilesh (Expert)
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04 August 2012 Is your property rented for residential purpose or commercial purpose.

In case residential- no service tax
Commercial- yes however you can avail basic exemption of Rs 10lacs.

No deduction for interest.

View are personal and based on limited facts.

visu iyer

visu iyer (Expert)
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04 August 2012 Agree with Nilesh ji..
to add..
the service provider on receipt of rent from commercial properties (over and above the threshold exemption)
the Property tax can be deducted; on the total rent and the same to be passed on to the lessee.

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2012 Thanks for your help!
Pls can you confirm that if i let out my residential property to a company, service tax is applicable or not. The doubt being, you are giving the residential property to a commericial establishment. Besides is there a difference in taxation if we give the property to a private limited, partnership or properitorship firm.

Nilesh

Nilesh (Expert)
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07 August 2012 Residential property for commercial purpose(for use of office etc) service tax would be applicable

Residential property for residence purpose service tax would not be applicable.

Irrespective of the fact who is the service receiver.

Trust the above clarifies.

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