12 August 2013
XYZ Pvt Ltd is providing engineering services and it has service tax registration no for engineering services , annual turnover is around 50 Lakh . During the year company purchased building and give it on rent. The company is not registered under service tax for renting of immovable property. Total annual rent is Rs 5 Lakh. Should XYZ charge service tax on such rental income and get it registration amended to include service of renting of immovable property?
12 August 2013
You should pay the service tax on rented value. SSI exemption is available to all service provider upto 10 lakhs including all services. You will not get the ssi exemption on rented value separate.