Service tax on Rental Income

Page no : 3

(Guest)

I am receiving a rent Rs 1.00 lakh per month which is sharing equally myself and my wife. The property is in the joint name. The property has given letout for a software company. As per the latest provisions of service tax, the service tax will be levied on rentals. Please guide the service tax provisions, whether service tax applicable to this case? In case if required to pay service tax.. who has to pay the service tax i.e service provider or service receiver. Please clarify ?

(Guest)

if we are renting immovable property to a person and we are also providing movable poperty like tables chairs and other material along with it.so whether service tax is also applicable to such movable property

ravi sankar (Chartered Accountant) (157 Points)
Replied 15 February 2008

Service tax is certainly payable individually on their individual share. In this case, it would be better to make saperate invoices from 7 co-owners and the company A "on" the person who had taken it on rent. Then Co A can add the service tax payable and claim it from the lessee. If this is not possible, and invoice for the rent is without addition of service tax, ( I) would ask the companyA to take half share which shall be deemed to have included the service tax at the applicabl;e rate.

(Guest)

I have a query. My Client is getting rent of Ard 12 lacs p.a but the tenents are saying that u/s 68 (1) of the service tax act he (my client) is liable to pay service tax not they are bound to pay tax to him. pl guide me.

shyam kishor porwal (Chartered Accountant) (183 Points)
Replied 16 February 2008

in first year you can take the benefit of exemption and pay tax only above Rs. 8 lac subject to no cenvat credit.

CA.Kamalesh Prajapati (Service ( in DLF Ltd)) (25 Points)
Replied 19 February 2008

Service receiver will pay the S. Tax CA.Kamlesh Prajapati

CA Junaid (CA) (47 Points)
Replied 19 February 2008

Rs 800000 limit is for particular person in relation to all the receipts during the year. u are required to pay service when total receipts from all small tenants are more than 8 lacs in relation to single person. However for current year u may not be required to pay as service is notified from 01-06-2007 and dept cannot collect tax for period before which service is notifed.More over you will not in receipt of estimated Rs 960000 from june-07 to Mar-08 period Any how from next year u are required to pay service tax.

(Guest)

Please clarify whether TDS will be be deducted on Rent after charging service tax or only on the Rent before charging service tax.

(Guest)

Thanks your view is become realy helpful to me

(Guest)

SERVICE TAX ON RENTAL INCOME FROM LET OUT A COMMERCIAL PROPERTY.

(Guest)

in the company where i am working ,my land owner has raised the point of service tax on renting the immovable property.My doubt is whether i can take the basic exemption limit of 8 lacs while i am calculatinh the tax of 12.36%.i am paying a rent of 124710 p.m. My other doubt is from which month i should caculate the tax. Is it from 01-06-2008.

(Guest)

normally it is known that tds is deducted on rental payments.I am paying a rent of Rs1,24,710 per month . I am suposed to deduct a tax of Rs.21195 per month @ 16.99%as tds for i.t. now my doubt is that wheather i should pay the service tax on 124710/-or on 103515/-(after tds). please clarify

(Guest)

Sir Actually we are running a computer training centre franchisee unit as well as a Pre-School in a building. The total rent that we are paying to the owner for the premises is 1.25 lacs which is split into 7 cheques in 7 names to the owner. The owner says that we are liable to pay him the service tax on 1.25 lacs. Is it right ? Actually is it possible for us to claim any exemption and if so how? Pls help

(Guest)

Hi Mr.Himanshu, We are running a computer training centre franchisee unit as well as a Pre-School in a building. The total rent that we are paying to the owner for the premises is 1.25 lacs which is split into 7 cheques in 7 names to the owner. The owner says that we are liable to pay him the service tax on 1.25 lacs. Is it right ? Actually is it possible for us to claim any exemption and if so how? Pls help