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Service tax on rental income

kanee fatima (article) (52 Points)

30 January 2012

the firm has sevice tax registration as an architect.

it has also given residencial complexes on rent..is the rent received liable to service tax.

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11 Replies

Keval Ponkiya (CA CS MBA(Fin.) M.Com. L.L.B.) (223 Points)
Replied 30 January 2012

No, madam that rent is not liable to service tax as it is not generated out of architecture service, simple !!!

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kanee fatima (article) (52 Points)
Replied 30 January 2012

Thank you sir ji

Keval Ponkiya (CA CS MBA(Fin.) M.Com. L.L.B.) (223 Points)
Replied 30 January 2012

No, madam that rent is not liable to service tax as it is not generated out of architecture service, simple !!!

kanee fatima (article) (52 Points)
Replied 30 January 2012

Thank you sir ji

CA ASHISH GUPTA (FCA, LL.B., MBA) (390 Points)
Replied 30 January 2012

service tax will not be applicable, becoz service tax is applicable only on immovable property use in the course of business. Residential property is out of the perview of service tax.

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CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 31 January 2012

Agree with Mr ASHISH.....

Sanjeev Rana (Tax Consultant) (36 Points)
Replied 31 January 2012

Its only applicable on commercial immovable property

Ankit Agarwal (Assistant Finance Controller) (84 Points)
Replied 02 February 2012

The scope of “renting of immovable property” under the service tax includes renting, letting, leasing, licensing or other similar arrangements of immovable property for use in the course or furtherance of business or commerce but does not include-

(i) renting of immovable property by a religious body or to a religious body; or

(ii) renting of immovable property to an educational body, imparting skill or knowledge or lessons on any subject or field, other than a commercial training or coaching centre;

The term“for use in the course or furtherance of business or commerce” includes use of immovable property as factories, office buildings, warehouses, theatres, exhibition halls and multiple-use buildings

"taxable service" means any service provided or to be provided to any person, by any other person in relation to renting of immovable property for use in the course or furtherance of business or commerce.

“immovable property” includes—

(i) building and part of a building, and the land appurtenant thereto;

(ii) land incidental to the use of such building or part of a building;

(iii) the common or shared areas and facilities relating thereto; and

(iv) in case of a building located in a complex or an industrial estate, all common areas and facilities relating thereto, within such complex or estate,

but does not include-

(a) vacant land solely used for agriculture, aquaculture, farming, forestry, animal husbandry, mining purposes;

(b) vacant land, whether or not having facilities clearly incidental to the use of such vacant land;

(c) land used for educational, sports, circus, entertainment and parking purposes; and

(d) building used solely for residential purposes and buildings used for the purposes of accommodation, including hotels, hostels, boarding houses, holiday accommodation, tents, camping facilities.

An immovable property partly for use in the course or furtherance of business or commerce and partly for residential or

any other purposes shall be deemed to be immovable property for use in the course or furtherance of business or commerce

samscool (accountant) (66 Points)
Replied 05 November 2012

Dear Sir,

If i am getting a rental income of rs.300000/- so am i liable to pay service tax or what is the limit for an individual to pay service tax on rental income.

Shekhar Arya

sourav jain (INTERNAL AUDITOR) (128 Points)
Replied 05 November 2012

if in last year or in current year ur turnover of taxable service is exceeds 10 lakhs than only u r liable to charge service tax..

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Anand Prakash Parsawat (ca) (27 Points)
Replied 10 November 2012

Sir,

Agricultural Market Committee (Krashi Mandi Samiti), besides collection of mandi fee, provides godowns /shops to dealers/ commission agents on lease basis for storage and trading of agricultural produce. Leases are two types one for 99 years & entire lease amount collects in one time and second is yearly basis where lease amount collects annually. My question is (1) whether providing of shops / godowns for agriculture produce liable to service tax? (2) if yes, whether both types of leasing liable to tax or lease for 99 years (like sale) will not covered? (3) If the gross receipts from leasing activity are below Rs.10 lacs per year, Market committee is liable for registration and payment of service tax.

Regards,
CA Anand Parsawat, Didwana (Raj.)