Rent collecting from retired employees

Dear Ravi,

The services by way of renting of an immovable property for the residential dwelling is covered under the Negative list and hence the same shall not be subjected to Service Tax.

For your ready reference, you may note -

as per Sec.66D(m) of the Finance Act, 1961, "Services by way of renting of residential dwelling for use as residence".

Hence, the same shall not be taxed under Service Tax Law, in my view.

rent is not covered under service tax regime as it is residential dwelling .

Agree that rent is covered under the negative list and not taxable. However you are collecting the amount as Mantainace charges, in my opinion ST is applicable.

Since your prinicpal activity is Mfg, you may not have big serivces income hence , Please look at the services amount of basic exemption of 10L PA, before deciding whether you need to collect ST from your retired employees.

i think prasad is right..it can be count in maintenance service as it is not covered in negative list.

Agree with the above views.

If dont show them as rent received, then the income may be subject to Service Tax.

if basic exception is crossed ? i should pay the service tax or not ?

if excemption is crossed ? i should pay the st or not ?

If you have crossed the exemption limit, you will need to Pay ST, also you can look at Cenvat Credit avaliable to discharge the ST Liablity.