Service tax on rent

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CA Mayur. Choudhary

CA Mayur. Choudhary (Querist)
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31 December 2015 Is that service tax is levied on rent,, plzz answer

CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)
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01 January 2016 yes service tax is leviable on rent however negative list covers renting of residential house for residential purpose hence no st is applicable in such case moreover renting of any place for residential purpose like hotel room is exempted upto the portion of 40%

CA Pallav Singhania

CA Pallav Singhania (Expert)
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01 January 2016 Renting is allowing, permitting or granting access, entry, occupation and usage of such facility in an immovable property with or without the transfer of the possession of control.

Residential dwelling is any residential accommodation but does not include hotel, motel, inn, guest house, camp-site, lodge, houseboat, or places meant for temporary stay.

There is no service tax charged on renting of immovable property for residential purpose. Service tax is not applicable to any amount that is refundable and collected from the tenant as security or rental deposit. The non-refundable deposit will be subject to service tax.

Maintenance charge towards the building is subject to service tax. The tenant is liable to pay the service tax. It is the land owner’s responsibility to collect the tax amount from the tenant and remit it to the department.

Service tax is mandatory to be paid if the total value of the services provided by the service provider exceeds the threshold level of exemption is up to Rs.10 lakhs per annum.

If the total value of the services provided by the service provider is less than Rs.10 lakhs per annum, then he is not liable to pay the service tax.

CA Mayur. Choudhary

CA Mayur. Choudhary (Querist)
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01 January 2016 thank uu so much friends...

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