Service tax on renting of immovable property

This query is : Resolved

Muthuraj (Querist)
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22 October 2013 Hi,

An Individual has an apartment containing 5 Flats meant for residential purpose. He is collecting Rs. 6 lacs p.a as rent from each flat and in total Rs. 30 lacs.

2 Flat is rented for running office and rest of the 4 Flats are residential.

In this case whether service tax is needs to paid?

What would be the case, the 1 Flat among the 2 Flats used for running office had been used as the Guest House of the Company?

Seeking experts opinion.

Thanks & Regards,

R.Muthuraj

CA Pallav Singhania

CA Pallav Singhania (Expert)
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22 October 2013 He needs to apply for service tax registration..
He's liable to pay service tax as the gross receipts exceeds the exemption limit 10 lacs..
However he claim exemption of 10 lacs...

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 October 2021 Service tax on residential rental income is exempted; but need to take registration if aggregate service value exceed 9 lakhs on any date.

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