Service tax applicable on rent paid to husband-owner

Dear All,

I would like to draw your kind attention that a Law firm is being ran by a Wife(Advocate) and she pays monthly Rent on Building to her husband(Senior Advocate) because Buiding is owned by her husband. Now the question is this, Is there any responsibility of the husband to charge service tax on Rent receivable???

Replies (2)

  

In this case rent exempt Rs. 1,80,000.00 lac. In other word you can received the above said amount then you liability to pay service tax. Further your income does not exceed Rs. 10 lac one financial year then your are not liable to pay service tax.

Another word if you are not cross the exemption limit for SSI i.e. 10 lac  or not recd. Excess Rs. 1,80,000.00 as rent you are not liable to pay service tax.

Further any queries can be raised plz forward the same.

If the aggregate value of taxable service provided by the service provider (husband) during the preceding FY is less than Rs. 10 Lacs, then no service tax upto Rs. 10 Lacs. Otherwise, husband has to pay service tax from Re. 1. The annual limit of Rs. 1,80,000 is for deducting TDS on Rent.

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