Service tax on immovable property

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Anant Gupta (Querist)
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28 September 2013 Rent from Residential Property : Rs. 15000/- from 1st April 2013 till September 30th 2013. House Tax Rs. 1800.00 per year

Rent from Chemist Shop : Rs. 25000/- from April 2013
House tax Rs. 1050.00 per year

Rent from Bank : Rs. 95000/- from October 2013 onwards House tax Rs. 20000.00 per year

Please specify Service Tax liability for Year ending March 2014 and March 2015. If my rental incode is more than 9 lakhs for 2013-2014 Will need to apply service tax number in March 2014 and in that case will I get Rs. 10 lakhs rebate of service tax for March 2015

If I continue to receive Rs. 15000/- from Residential propery will it change my tax liability

CA Suresh Jain

CA Suresh Jain (Expert)
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29 September 2013 1 rent from residential property is not taxable
2 rent from Bank from 01.10.2013 to 31.03.2013 @ Rs. 95000 per month plus Rs. 25000 from chemist minus property tax proportionate aggregates to Rs Rs. 858950 below taxable limit and therefore need not pay tax and take registration also

3. In the year 2014-15 the following will be the position :-

a. Taxable rent per month from chemist 25000-87.50=24,912.50 and
b. taxable rent per month from bank would be Rs. 93,333.33

The exemption is available upto Rs. 10,00,000 i.e. upto November 2014 you need not pay any service tax. but apply for registration in the month of October 14.
In the month of December you shall be required to pay service tax on Rs. 54033.00 which you may charge proportionately from chemist and bank. Thereafter you shall be required to pay service tax on the monthly taxable amount of rent as mentioned above.
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case

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