Rental Income
This query is : Resolved
29 March 2010
Dear Sir,
We are a Limited company owing a property in Kolkata. The said property has 180 tenants out of which 50% are residential and 50% commercial
Our total receipt from tenant in the property as on 31st March is as follows
12,25,000.00 Rent
97,750.00 Building maintance
1,83, 400.00 Calcutta Municipal Charges
Total received from tenants: 15,03,427.00
Our Payment are as follows
1,35,000.00 Tax to Municipality
53,500.00 Salary paid to rent collector and other charges
Kindly inform (1) do we have to charge Service Tax on both residential and commercial tenant (2) service tax to be charged from which date (3) other details which may assist us
With regards
lalit
We are a Limited company owing a property in Kolkata. The said property has 180 tenants out of which 50% are residential and 50% commercial
Our total receipt from tenant in the property as on 31st March is as follows
12,25,000.00 Rent
97,750.00 Building maintance
1,83, 400.00 Calcutta Municipal Charges
Total received from tenants: 15,03,427.00
Our Payment are as follows
1,35,000.00 Tax to Municipality
53,500.00 Salary paid to rent collector and other charges
Kindly inform (1) do we have to charge Service Tax on both residential and commercial tenant (2) service tax to be charged from which date (3) other details which may assist us
With regards
lalit
CA Ashok Kumar Sahu
(Expert)
29 March 2010
AS per my opinion:
1st you bifurcate your rent received on commercial & residential. Service tax applicable only on Commercial Rent ie 6,12,500/- (50%) it's below 10lacs hence no liability of service tax
1st you bifurcate your rent received on commercial & residential. Service tax applicable only on Commercial Rent ie 6,12,500/- (50%) it's below 10lacs hence no liability of service tax
30 March 2010
No service tax on renting of residential property... You have to charge service tax when the limit crosses 10 lacs. and that too on the income above 10 lacs only....
This is applicable if commercial rent income exceeds 10 lacs....And also the charges you collect from the tenants regarding the charges and taxes should not have a profit element. It has to be direct reimbursement only. You jst take from tenant and give to the GOvt.
This is applicable if commercial rent income exceeds 10 lacs....And also the charges you collect from the tenants regarding the charges and taxes should not have a profit element. It has to be direct reimbursement only. You jst take from tenant and give to the GOvt.
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