Renting of Immovable property

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ANSHUMAN KHANDELWAL

JOB

133 Points Posted on 17 February 2009

dear all,

A partnership firm having transport business gives one of property to his sister concern & charge rent per month which is exeeding 10 Lacs pa.my query is whether firm is required to registered in service tax because renting of property is not firm`s business,its not a normal business transaction.

as per definition of service as per my understanding service tax on renting of property is applicable only when renting of property is our regular business transaction.

pl let me clear fast

Thanks

Replies (4)

CA. Dashrath Maheshwari

TaXpert

12483 Points Posted on 17 February 2009

If the rent exceeds 7 Lac then service tax has to be charged...

The REGULAR BUSINESS is not defined in the finance act or service tax rules....

Rajesh Kumar

Advocate- Tax

6957 Points Posted on 17 February 2009

The service tax is payable.

CA CS VINAYAK PATIL

CHARTERED ACCOUNTANT

658 Points Posted on 02 March 2009

Originally posted by :ANSHUMAN KHANDELWAL
"	dear all, A partnership firm having transport business gives one of property to his sister concern & charge rent per month which is exeeding 10 Lacs pa.my query is whether firm is required to registered in service tax because renting of property is not firm`s business,its not a normal business transaction. as per definition of service as per my understanding service tax on renting of property is applicable only when renting of property is our regular business transaction. pl let me clear fast Thanks	"

The income from House Property charge to Income From House Property and income not considered under service tax head because it is not regular business of the firm

Rajesh Kumar

Advocate- Tax

6957 Points Posted on 02 March 2009

Let us not confuse in income tax and service tax. On the same amount both the taxes can be charged. In fact it is always charged as one is an indirect tax and other is a direct tax.