Service Tax on Rent from Commercial property

Save Share

This query is : Resolved

Rahul Sharma (Querist)

10 October 2010
X & Y purchase the Commercial Building on their joint name and lease the same to ABC Ltd. for 10 years.

Case 1 Lease rental received from ABC Ltd is Rs.18 Lacs (share of X & Y is Rs.9 Lacs each)

Case 2 Lease rental received from ABC Ltd is Rs.18 Lacs (share of X & Y is Rs.12 Lacs & 6 Lacs respectively)

Case 3 Lease rental received from ABC Ltd is Rs.18 Lacs (share of X & Y is Rs.9 Lacs each but the X is CA and he is already registered with Service Tax)

Kindly advice, if the Lease Agreement evidently mentions their Rental share

Question

1. Whether there is require for Service Tax Registration for X & Y.

2. Whether we will call the X & Y Deemed AOP.

Thanks & Regards

Rahul Sharma

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

11 October 2010 where an individuals taxable services exceeds 10 Lakhs then only liable.
Rental of IP taxability itslef is in doubt with Delhi HC staying. Revisit requirement to pay .

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now