An assesse has given properties on Rent and Gross rent from all exceeds Rs.10.00 Lacs. However a commercial property given on rent in Jan 14 Gross Rent does not cross 10 Lacs. Whether Service tax is leviable on rent of above property. The exemption limit of 10 Lacs is applicable to property wise gross rent??
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Service tax on rent
Replies (3)
No.
There cannot be any property-wise bifurcation if the receipient remains the same.
If the gross receipts has exceeded 10 lacs, even the 2nd property is covered under the liability.
Liability under service tax is qua- person. Therefore it is irrelevant what is the rent for an individual property.
As per conditions of Notfn No. 33/2012-ST,
(vii) where a taxable service provider provides one or more taxable services from one or more premises, the exemption under this notification shall apply to the aggregate value of all such taxable services and from all such premises and not separately for each premises or each services; and
(viii) the aggregate value of taxable services rendered by a provider of taxable service from one or more premises, does not exceed ten lakh rupees in the preceding financial year.
Thus,the exemption limit of 10 Lacs is applicable to aggregate of all taxable services and not property wise.
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