Rent from income tax department: retrospective increase

A Trust has rented out a property to the Income Tax Department. The rent was Rs.50000/- per month i.e. per annum Rent is Rs.6 lacs for which we need not register for Service Tax.

 

Now, for the 3 year period June 2010 to June 2013 Rent has been increased to Rs.125000/- per month which means Rs.15 lacs for the year. So the Trust will get the difference of Rs.9 lacs per year for 3 years i.e. Rs.27lacs plus Service Tax. When is the overall treatment under Service Tax and its liability?

Replies (2)

As your gross turnover does not exceeds 50 Lakh per annum you can pay tax on receipt basis i.e. when you received rental income service tax liability arises.
 

Originally posted by : Pradip
As your gross turnover does not exceeds 50 Lakh per annum you can pay tax on receipt basis i.e. when you received rental income service tax liability arises.
 

Is this 50 lac per annum clause also applicable to a Trust? I thought its only applicable to Individuals, Partnership Firms and LLPs.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
13 August 2026
Chartered Accountant (FP&A)

Client of Trellis Consulting

Gurgaon

CA

View Details
Company
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER

Anupam Parashar & Co.

Ghaziabad

CA Final

View Details
Company
ARTICLESHIP 04 September 2026
Accounts Executive

Hema Yashwanth & Associates

Chennai

B.Com

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
ARTICLESHIP 24 August 2026
Chartered Accountant Articles

Rohit KC Jain & Co

New Delhi

CA Inter

View Details