Service tax on rent

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Rajesh Chadda (Querist)
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28 May 2013 I am running my car ageny on rental property. I am giving rent to 4 different poples but my total rent for the year is 24.00 lac. A cheque of Rs 50000 is given to every person every month.
(1)Is there is any liabiliity of Service Tax in My hands ?
(2)Is there is any liability of Service Tax in Hands of Land Lord

Rupesh Jain

Rupesh Jain (Expert)
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28 May 2013 if property in name of 4 person and each recd. Rs. 180000/- Per year then NO tds to be deducted otherwise 10% of Rent to deducted.
if any co-owner have no PAN then 20% TDS to be deducted and deposited

Rajesh Chadda

Rajesh Chadda (Querist)
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28 May 2013 Sir my query is regarding service tax pls clarify

Rajesh Chadda

Rajesh Chadda (Querist)
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28 May 2013 Query is not related to TDS

Rajesh Chadda

Rajesh Chadda (Querist)
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28 May 2013 Pls clarify

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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24 July 2025 Got it! Here's a clear explanation regarding **service tax on rent** for your situation:

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### Your situation:

* You run a car agency on a rented property.
* You pay rent to **4 different landlords**.
* Total rent paid annually = Rs. 24 lakhs.
* Each landlord receives Rs. 50,000 per month = Rs. 6 lakhs per year each.

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### (1) **Is there any Service Tax liability on your side (the tenant)?**

* No, **service tax on renting of immovable property is payable by the owner/landlord**, not by the tenant.
* As a tenant, you don’t have any service tax liability on the rent you pay.

---

### (2) **Is there any Service Tax liability on the landlords’ side?**

* Yes, **each landlord has to see if their individual rental income exceeds Rs. 10 lakhs per annum threshold for service tax registration and payment**.

* Since each landlord receives Rs. 6 lakhs annually (Rs. 50,000 x 12), which is **below Rs. 10 lakhs threshold**, **there is no service tax liability on each landlord individually**.

* **However, if any single landlord receives more than Rs. 10 lakhs per year as rent, that landlord must register and pay service tax.**

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### Summary:

| Person | Rent Received (Annual) | Service Tax Liability? |
| ----------------- | ---------------------- | ------------------------------------------------ |
| Each landlord (4) | Rs. 6,00,000 | **No** (below Rs. 10 lakh threshold) |
| You (tenant) | Paying Rs. 24,00,000 | **No** (tenant does not pay service tax on rent) |

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### Additional Notes:

* This is under pre-GST regime (Service Tax).
* Landlords must check individually whether they cross the threshold.
* Also check TDS (Tax Deducted at Source) rules on rent payments.

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If you want, I can also help explain how TDS applies or if you want info on GST implications post-service tax era.

Does that clear things up?

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