Our newly formed Pvt Ltd Co has taken an office from 1st April 2010 on Rent =Rs.35,000 pm. from an Individual
Whether we are liable to pay Service Tax on such rent.
Whether the individual (land lord), being an individual has any exemption like as Not Eligible till the minimum exemption limit of Rs.10 lacs is not exceeded.
Service Tax is a Indirect Tax viz the impact and incidence falling on tow different people in the given case your company has to bear the impact i.e. the service tax.
You are bound to pay service tax only once he charges you the same ..
Yes he can avail the benefit of small service provider upto Rs. 10 Lacs of rental in a year in order to not levy service tax
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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