Service tax on rent

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 June 2014 A family of 4 brothers have joint properties which are let out and the eldest brother;s share in rent is Rs. 12 Lakhs in the previous year but he has not registered neither charged service tax on the same as the tenants are issuing cheques jointly in the name of all 4 brothers. Now
1. How the eldest brother can charge service tax
2. Whether Service tax is to be charged on the entire amount of Rs. 12 Lakhs or he can claim Rs. 10 Lakhs exemption and charge Service tax on the balance amount of Rs. 2 Lakhs. If yes, under which section is this exemption available.
3. Is there any remedy from payment of Service tax on rent for the Individuals.
Please reply.
Thanks in advance....

Guest

Guest (Expert)

11 June 2014 no remedy for individuals also for rent if they crosses basic exemption limit

and service tax is applicable on full amount once u crosses exemption limits

CA UMESH DULAL

CA UMESH DULAL (Expert)

11 June 2014 If the property is in joint name and share of rent of owner is above 10 lacs, each owner whose share of rent is more than 10 lacs should get registration and charge ST on entire amount of his share of rent.
Unless the property is given on rent to exempted organisation, there is no remedy from service tax payment.

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