Service tax on renting of immovable property

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Manoj (Querist)
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30 September 2012 Dear Sir

Request your advise on the following query

1 A property is registered in name of four brothers
2. this property is given on rent to a company
3. we receive total rent of one lac per month, each brother receive 25000/- and by a individual cheque and after deduction of TDS

our query - is the exemption limit of 10lac is available to each of the four owners seperately, as the rent each of the owners receive in below the exemption limit of 10 lac

thanks in advance for your help

regards
manoj

CA Suresh Jain

CA Suresh Jain (Expert)
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30 September 2012 Each of the person is a service provider and therefore the exemption limit is available to them individually.

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Manoj

Manoj (Querist)
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30 September 2012 dear sir...we have received a SCN stating that as the property is registered by a single deed we are to pay service tax and the exemption is not available individually..

CA Suresh Jain

CA Suresh Jain (Expert)
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30 September 2012 you mail the SCN at sureshjain.nj@gmail.com for study and suitable reply

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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30 September 2012 Exemption available as per notification 6/2005 ST dated 1/3/2005 read along with notification 8/2008 ST dated 1/3/2008 is separately available for each of the four co-owners.

CESTAT Ahmd Bench decision dated 21/6/2012 in the case of Dinesh K Patwa Vs Commissioner of Service Tax may be referred to.

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Manoj

Manoj (Querist)
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01 October 2012 dear sir

really thankful for your detailed reply..

thanx
manoj

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