Service tax - minors / allowances
This query is : Resolved
19 May 2012
How are minors treated if they are part owners in a building for Service tax on Rental income? Do they get treated as seperate individuals with the 10 Lakhs exemption?
2. What are the exemptions allowed on Svc Tax on rentals - is the exemption on the first 10 Lakhs only for the first year or will it be given every year?
Pls clarify. Thanks
2. What are the exemptions allowed on Svc Tax on rentals - is the exemption on the first 10 Lakhs only for the first year or will it be given every year?
Pls clarify. Thanks
19 May 2012
No, minor is not treated as separate individual for 10 lakh exemption also 10 lakh exemption depend on your last year revenue.........
21 May 2012
What can I do to obtain the 10 Lakh exemption for four Minor owners int he building? Pls help clarify.
24 July 2025
Here’s the clarification on your queries regarding service tax on rental income involving minors:
---
### 1. **Are minors treated as separate individuals for the ₹10 lakh exemption?**
* **No**, minors are **not treated as separate individuals** for the purpose of service tax exemption.
* Even if minors are co-owners, the exemption limit of ₹10 lakhs is applied collectively to the owner(s), **not individually for minors**.
* So, you **cannot claim ₹10 lakh exemption per minor owner separately**.
---
### 2. **Is the ₹10 lakh exemption on rental income service tax a one-time or yearly exemption?**
* The ₹10 lakh exemption is **available every financial year**.
* If your aggregate taxable rental income in a financial year does not exceed ₹10 lakhs, you are exempt from service tax for that year.
* The exemption is **not limited to the first year only**, it applies every year based on turnover.
---
### 3. **How to obtain exemption if building is owned by minors?**
* Since minors are not treated as separate taxable persons, you cannot split the exemption among them.
* The exemption is available to the **aggregate turnover of the taxable entity (owner)**.
* To utilize separate exemptions, the building or property should ideally be owned by different legal entities (e.g., separate individuals or companies), which is not possible with minors unless a guardian holds ownership on their behalf as a separate legal entity.
---
**Summary Table:**
| Query | Answer |
| --------------------------------------- | -------------------------------------------- |
| Minor treated as separate individual? | No, minors are aggregated with other owners |
| ₹10 lakh exemption available per minor? | No, exemption applies collectively to owners |
| Exemption validity | Every financial year based on turnover |
---
If you want, I can help you draft a strategy or explore legal ways to maximize exemption benefits for multiple owners. Would you like that?
---
### 1. **Are minors treated as separate individuals for the ₹10 lakh exemption?**
* **No**, minors are **not treated as separate individuals** for the purpose of service tax exemption.
* Even if minors are co-owners, the exemption limit of ₹10 lakhs is applied collectively to the owner(s), **not individually for minors**.
* So, you **cannot claim ₹10 lakh exemption per minor owner separately**.
---
### 2. **Is the ₹10 lakh exemption on rental income service tax a one-time or yearly exemption?**
* The ₹10 lakh exemption is **available every financial year**.
* If your aggregate taxable rental income in a financial year does not exceed ₹10 lakhs, you are exempt from service tax for that year.
* The exemption is **not limited to the first year only**, it applies every year based on turnover.
---
### 3. **How to obtain exemption if building is owned by minors?**
* Since minors are not treated as separate taxable persons, you cannot split the exemption among them.
* The exemption is available to the **aggregate turnover of the taxable entity (owner)**.
* To utilize separate exemptions, the building or property should ideally be owned by different legal entities (e.g., separate individuals or companies), which is not possible with minors unless a guardian holds ownership on their behalf as a separate legal entity.
---
**Summary Table:**
| Query | Answer |
| --------------------------------------- | -------------------------------------------- |
| Minor treated as separate individual? | No, minors are aggregated with other owners |
| ₹10 lakh exemption available per minor? | No, exemption applies collectively to owners |
| Exemption validity | Every financial year based on turnover |
---
If you want, I can help you draft a strategy or explore legal ways to maximize exemption benefits for multiple owners. Would you like that?
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
- Audit of F and O T/O
- Applicablity on tds
- How to update Transaction data in broker samco account holding after transfer shares KARVY
- GST payable under RCM
- Unable to generate and save json file for updated return
- For sale of shares of a private limited company, what is process cost and time for demat of shares
- Section 194I not showing in TDS RPU for Compnay Assessee for TDS on rent
- Tax audit & Switching from Presumptive taxation
- Which SAC code should be ed?
- Regarding TDS not deducted on rent
Trending Online Classes
-
LIVE Course on GSTR-9 & GSTR-9C (Technical | Practical | Concept - Based)
Sachin Jain03 November 2025
CAclubindia
