Service tax in renting of immovable property

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one of my client being an Individual has owned a Commercial Property i.e. Factory Premises which he has given on Rent to 2 concerns & getting Rental Income from them. Both Concerns are engaged in Manufacturing Activities & Proprietorship Concerns. During F.Y.2012-13 i.e. period up to Sept,2012 his Rental Income exceeds Rs 9 lacs. Hence he has to register with Service tax Deptt & to obtain STC No.

Now the query as under:- i) Whether My client can claim SSI exemption Limit up to Rs.10 Lacs so far taxable Service i.e. Renting of Immovable Property is concerned. ii) whether both Concerns being manufacturing can claim the Cenvat Credit as to Service Tax Paid on Renting of Immovable Property based on Bill/Invoice issued by the Property Owner & showing separately Service Tax on Rent of Immovable Property. 

 

Replies (1)

Lessor can claim exemption up to Rs.10L provided his value of service during previous year has not exceeded Rs.10L. Service tax paid by lessor can be taken as cenvat credit by lessessee , if he is paying excise duty or service tax.

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