Dear Professional Collegues,
One of my clent owns a commercial property for long time and he is enjoying its rental income. The total turnover is about 20 lacs in a year, however few years ago he had transferred the income of the building to his 3 minor grand children. So as per his contention as he has transferred his income to 3 of his minor grand children his turnover is reduced to 5 lacs (less than 10 lacs exemption limit) and hence he did not get registered to service tax and hence he does not have the liability of service tax for the above said rental income.
However the income is clubbed in his income (Transferror) as per clubbing provision of the Income tax act. Is his contention is right ? Does he not liable to service tax ? Please give your valuable opinions.
Looking forward for your reply.
Thank you,
Regards,
CA.Kaartic Jeyaraman.
CAclubindia
