Service Tax on Rent

Service Tax (Legacy) 1026 views 5 replies

If service provider - A Partnership Firm has let out a building of two floors to a company, under two different agreements stating that first floor is for Business purpose and rent payable is Rs. 8,00,000/- P.M and  second floor is for residential purpose of the company's employees for rent of Rs. 3,00,000/- P.M.   Should the service provider needs to pay Service Tax on the amount Rent collected for let out of Second floor for residential purpose.

Replies (5)
Originally posted by : sankar ganesh armugam

If service provider - A Partnership Firm has let out a building of two floors to a company, under two different agreements stating that first floor is for Business purpose and rent payable is8,00,000/- P.M and  second floor is for residential purpose of the company's employees for rent of3,00,000/- P.M.   Should the service provider needs to pay Service Tax on the amount Rent collected for let out of Second floor for residential purpose.

8 Lacs pm is taxable ...........without any clarification 

3 lacs is taxable if payee is company,

exempted if payee is employees in their individual capacity

8 Lacs is Taxable

the stay has been given by Delhi and Madras High court on rental of immovable property, so service tax may not be charged on business purpose also.. the matter will come on 19th july in Delhi High Court..

Dear Sir,

                This provision is applicable after 19th july not before

it will be decided on 19th july....the court has already heared the matter, and likely to pronounce the judgement on 19th


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