Renting of immovable property

This query is : Resolved

Avnish (Querist)
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05 November 2012 We have given the Immovable property on rent @ 125000/- per month from 1/4/2012

In this case, how the service tax & tds, both shall be dealt, as our total rent collected is going to exceed rs. 10 lacs during the year.?

CA Roshan Jha

CA Roshan Jha (Expert)
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05 November 2012 In this case with rent amount of Rs.1,25,000, you will add service tax @ 12.36% therefore the total bill amount will be Rs.1,40,450. The tenant will be deducting tds @ 10% on Rs. 1,25,000 i.e Rs. 12,500 and you will receive Rs. 1,27,950 (1,40,450-12,500) from the tenant every month.

Avnish

Avnish (Querist)
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05 November 2012 Thank you so much Mr.Roshan, very nicely explained............

Avnish

Avnish (Querist)
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05 November 2012 Dear Roshan,

Please clear my one more Query.
how the service tax shall be dealt, when we are collecting rent from two different parties 100000/- p.m. and 15000/- p.m. from 1/4/2012.

when we will become liable to pay service tax and from when we shall also collect the same from the tenant?

CA Roshan Jha

CA Roshan Jha (Expert)
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05 November 2012 Service tax is not dependent on service recipients. If the service provider's gross receipt is expected to be more than 10 lakhs during year, than he needs to charge service tax on each and every bill pertaining to that service from the beginning itself.The bill may be issued to a single person or different persons. Service tax shall become due at the time of booking or receipt of such income, whichever is earlier. and such service tax shall be paid to the government by 6th day of the end of the quarter/month as the case may be.

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