Limit of rs. 10 lacs
This query is : Resolved
18 December 2013
Hello Everyone,
if i have property A in which i have 5 tenants on various floors, and the total rent received from all of them is more than Rs.15 Lacs p.a., then will i have to charge service tax from all those 5 tenants or only from that one tenant from whom i am in receipt of rent of more than Rs. 10 Lacs p.a ? Please do quote all the relevant case laws & sections as you feel necessary to justify your answer. kindly reply asap.
if i have property A in which i have 5 tenants on various floors, and the total rent received from all of them is more than Rs.15 Lacs p.a., then will i have to charge service tax from all those 5 tenants or only from that one tenant from whom i am in receipt of rent of more than Rs. 10 Lacs p.a ? Please do quote all the relevant case laws & sections as you feel necessary to justify your answer. kindly reply asap.
18 December 2013
Sir ,if you are renting the property for commercial purpose the same is taxable under service tax when the value of rent i.e the aggregate value of service exceeds 10 lakh rupees.
In my view,service tax shall be charged from all the tenants as Renting of immovable proeprty is a taxable service.
Secondly,the rent received is the value of the taxable service.The rent of Rs15 lakhs is much higher than the exemption limit of 10 lakhs.So you are liable to pay service tax and charge the same from all the tenants.
In my view,service tax shall be charged from all the tenants as Renting of immovable proeprty is a taxable service.
Secondly,the rent received is the value of the taxable service.The rent of Rs15 lakhs is much higher than the exemption limit of 10 lakhs.So you are liable to pay service tax and charge the same from all the tenants.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- Fixe term employment
- Is any professional CA is here please reply
- GST ITC REVERSE
- Putting a heading on received mail
- TDS on TRUST
- Reprocessing of rectification order AY 2025-26
- Section 50-fixed asset-->building ceases to exist
- Consolidated financials
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
