uday
This query is : Resolved
K J UDAYA KUMAR PILLAI
(Querist)
04 April 2016
Renting both Residential and commercial property and exceed 15lacs will it attract service Tax please clarify me
CMA Ramesh Krishnan
(Expert)
04 April 2016
If the rental value of commercial property exceeds Rs.10 Lakhs then service tax applies
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K J UDAYA KUMAR PILLAI
(Querist)
04 April 2016
thanks sir, my query we need to pay for both commercial and residential properties
K J UDAYA KUMAR PILLAI
(Querist)
04 April 2016
we have a 11 lacs from commercial property and 4 lacs on residential property for whole the amount we need to pay the service tax
CMA Ramesh Krishnan
(Expert)
04 April 2016
you need to pay service tax only on commercial property rent
K J UDAYA KUMAR PILLAI
(Querist)
04 April 2016
in another case we have the rental income on residential property of Rs 12 lacs I believe for this no need to pay tax. Because of Residential property there is no service tax it
02 August 2025
Exactly! Here's the clear picture regarding service tax on rental income (as per the pre-GST rules):
* **Commercial Property Rent:** If the **annual rent from commercial property exceeds ₹10 lakhs**, service tax is applicable on the entire commercial rent amount.
* **Residential Property Rent:** No service tax is applicable on rent received from **residential properties**, regardless of the amount.
So in your cases:
* For **₹11 lakhs from commercial property + ₹4 lakhs from residential**, service tax applies only on ₹11 lakhs (commercial rent), not on residential.
* For **₹12 lakhs from residential property only**, no service tax is applicable.
Note: This was the rule before GST came into effect from July 2017. After GST, the taxation on renting services has changed and depends on specific categories.
Do you want details about the GST impact on property rent too?
* **Commercial Property Rent:** If the **annual rent from commercial property exceeds ₹10 lakhs**, service tax is applicable on the entire commercial rent amount.
* **Residential Property Rent:** No service tax is applicable on rent received from **residential properties**, regardless of the amount.
So in your cases:
* For **₹11 lakhs from commercial property + ₹4 lakhs from residential**, service tax applies only on ₹11 lakhs (commercial rent), not on residential.
* For **₹12 lakhs from residential property only**, no service tax is applicable.
Note: This was the rule before GST came into effect from July 2017. After GST, the taxation on renting services has changed and depends on specific categories.
Do you want details about the GST impact on property rent too?
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