Renting of immovable property ie, a shop in commercial bldg

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Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2012 a shop in a commercial bldng is let out and rent received. is it taxable under service tax. if yes, rs.10 lacs exemption can be availed? and do the same income ie, rent from shop in shoping complex will also be taken in income from business or profession under income tax act? and also tell what code should be filled for nature of business in part A-nature of business?

Guest

Guest (Expert)

17 July 2012 1. Renting of immovable property i.e. shop is covered under ambit of service tax.
2. The income from renting of shop can be shown under business income provided you satisfy certain conditions and the agreement is prepared accordingly.

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RENGARAJ R.K

RENGARAJ R.K (Expert)
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17 July 2012 For your first question, the threshold exemption of 10 lacs can be availed for this commercial rental income also. Moreover, any municipal taxes paid on the said property can be deducted proportionately when you start paying service tax after reaching 10 lacs.

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Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2012 interest on loan taken for acquiring such property can be deducted under business income? as per previous answers to this query?