Service tax on immovable property

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sundeep

owner

21 Points Posted on 30 September 2011

hello ,

i have a query and quite a urgent one actually ..any help would be greatly appreciated.

i had one warehouse which i had rented out to a corporte which fetched me a rental of Rs.6 lakhs per annum.

since my rental income didnt cross Rs.10 lakhs i didnt charge any service tax from my client.

now i have built another warehouse which i have rented out to another corporate ( not the earlier one)

which would fetch me Rs.8 lakhs per annum as rent from next month.

i have a doubt.. since both my rental s incomes whn added up exceed 10 lakhs should i charge service tax on both my clients or do i still be exemt from service tax since my each rental has not crossed 10 lakh limit.

can any body guide me through this..would be a great help.

thanks

sundeep

Replies (3)

CA Unnikrishnan Nair N

Chartered Accountant

2114 Points Posted on 01 October 2011

You have only one basic exemption of Rs.10L. Tax liability arises as soon as aggregate rent of both the premises crosses Rs.10L. That point onwards, you will be charging service tax on both the tenants. And the baisc exemption not available for next year.

SANJAY

CHARTERED ACCOUNTANTS

570 Points Posted on 05 October 2011

Agree with Mr Unnikrishnan Nair ji...

piyush

cheif accountant

46 Points Posted on 01 November 2011

i m paying service tax on the rented property to the government ...i can claim credit of the tax paid in electric billn telephone bill in respect of our copmany ..bcoz our company rent the immovable property ..plz help as soon as possible ..and let me know i can take the credit of service tax on electric bill .telephone etc ,,,