18 March 2009
the property is held by husband & wife having 50 % each, the area in the property falling in their share is identified & specified.
The property was let out w.e.f 1.2.2009 at monthly rent of 120000/- per month each, however consolidated cheque of 240000/- recd and deposited in joint account.
the security in the shape of advance rent is 2 month rent on which tds not deducted by the tenent.
pl advise - whether to calculate thresh hold limt of 9 lacs for registration the rent would be seen jointly or individually.
also will the advance rent which is basically security deposit refundable after 3 year will be added to check 9 lac
in totality advise what would be status if the registraion is applied w.e.f. 1.4.2009
18 March 2009
Service Tax is applicable on "Renting of Immovable property" for business of commerce. Service tax applicable of Rent only. Refundable Security Deposit is not part of taxable value for service tax hence not includable for calculation of 9lac. Also Limit of 9lac will be calculated seperately for husband & wife. One important point- for calculating 9 Lac all taxablle service will be considered. If husband or wife providing other services also then those will be included for 9 lac.
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