Query for service tax

Rent recieved under agreement by two individuals :- Rs. 16,00,000/- ( Rs. 8,00,000/- each)

Individual limits do not qualify for service tax levy

Rent as a whole qualifies for Service tax

Whether service tax leviable on both of them or not. 

Reference to law would be highly appreciated.

 

Replies (5)

Invoice raised in the month of Nov 12 but payment recieving in the month of Feb 13 whether we have to make the service tax payment for this invoice in Jan 12 or we have to make the payment after recieving the paymnet  ? anybody pls help me....


I presume that the two individuals are joint owners of the property but this joint ownership doesn't make them a person(P'ship firm,HUF  Co,BOI etc. as defined u/s 2(32) of the I.T Act,1961.This means that the receipts by them cannnot be clubbed .....therefore the indiviudual receiving Rs. 16lacs as rent is only liable to ST.

Originally posted by : Suntiara Technologies

Invoice raised in the month of Nov 12 but payment recieving in the month of Feb 13 whether we have to make the service tax payment for this invoice in Jan 12 or we have to make the payment after recieving the paymnet  ? anybody pls help me....

REFER RULE 3 OF POINT OF TXATION RULE-DATE OF INVOCE IS POTR IN UR CASE SO U SHD HAVE PAID SER TAX  IN NOV12 ONLY

Anshul,

As par as i know, if any agreement is there suporting the property belongs to two different individulas ( Mutation of the property is not required) n the property is registerd on both names then for each individual saparately, the exemption limit is applicable.

if they are only splitting the rent money then different scenario. service tax is applicable to the person on whose name property is registered. so in this case service tax is applicable. only rent not hire charges to be included while caluculating service tax on rent.

i hope this may help u.

thanks

thank you tushar.

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