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Service tax limit whether applicable or not

Others 472 views 5 replies

A service provider is registered as Business Support Service Provider. He is regularly paying the service tax on the services of Business Support.  Now he has a commercial premises to be given on rent. The rent of the same is below Rs. 10 lac per annum.The question is whether the rental income will attract Service Tax? 

Replies (5)

Service tax is applicable in case of renting out of commercial properties. It is exempted when rented for residential purpose. If the aggregate turnover (from business support service and rental income) exceeds Rs.10 lacs, then ST is applicable.

Thank you. But my question is that the rental income is well below 10 lakh. but the other taxable service income is already above 10 lac limit. Now the question arises, whether the rental income should be considered for service tax? It is a commercial rental income and not the residential rental income.

Thank you. But my question is that the rental income is well below 10 lakh. but the other taxable service income is already above 10 lac limit. Now the question arises, whether the rental income should be considered for service tax? It is a commercial rental income and not the residential rental income.

Thank you. But my question is that the rental income is well below 10 lakh. but the other taxable service income is already above 10 lac limit. Now the question arises, whether the rental income should be considered for service tax? It is a commercial rental income and not the residential rental income.

Limit of Rs.10 lacs is for computation of total turunover (aggregate from various services). In this case, since turnover from other services already exceeds the limit, you need to pay ST on rental income, as it is a commercial property.


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