ramesh agrawal (business) (179 Points)
18 September 2010I and my minor son hold a plot jointly. I , from my income , constructed a commercial building to give on rent. I want my son to receive half the rent. Each of us expect to receive Rs.6 lakhs each year as rent. What will be my service tax liability? The income of child will be clubbed with mine for IT purpose. Will the income of child also clubbed with mine for Service tax liability as it crosses the threshold limit of Rs.10 lakhs on clubbing.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 14 May 2011
as minor child has no independent identity, so the rent income would get clubbed with you and you will have to pay service tax also on such rent.
to save the situation, get pan card in name of minor child, and get rent divided,
CAclubindia
