19 October 2012
A friend of mine has rented his apartment to an executive of a company. The rental agreement is between my friend and the company. Will this be treated as income for commercial purpose or residential? Should Service Tax be collected from the tenant in the event the agreement is considered is commercial or my friend's rental income exceeds Rs.10L per annum? Kindly advise. Thanks.
19 October 2012
It will be considered as residential purposes as is being used by an individual for residence It does not matter that it is entered with the company.hence service tax not applicable.
In case of commercial ST is applicable if rent exceeds 10 lakhs .
CAclubindia
