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Service tax on Rental Income

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458230 Points Joined August 2012
I am receiving a rent Rs 1.00 lakh per month which is sharing equally myself and my wife. The property is in the joint name. The property has given letout for a software company. As per the latest provisions of service tax, the service tax will be levied on rentals. Please guide the service tax provisions, whether service tax applicable to this case? In case if required to pay service tax.. who has to pay the service tax i.e service provider or service receiver. Please clarify ?
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On 13 February 2008 at 09:44
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458230 Points Joined August 2012
if we are renting immovable property to a person and we are also providing movable poperty like tables chairs and other material along with it.so whether service tax is also applicable to such movable property
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On 13 February 2008 at 10:44
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Chartered Accountant
157 Points Joined October 2007
Service tax is certainly payable individually on their individual share. In this case, it would be better to make saperate invoices from 7 co-owners and the company A "on" the person who had taken it on rent. Then Co A can add the service tax payable and claim it from the lessee. If this is not possible, and invoice for the rent is without addition of service tax, ( I) would ask the companyA to take half share which shall be deemed to have included the service tax at the applicabl;e rate.
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On 15 February 2008 at 19:46
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458230 Points Joined August 2012
I have a query. My Client is getting rent of Ard 12 lacs p.a but the tenents are saying that u/s 68 (1) of the service tax act he (my client) is liable to pay service tax not they are bound to pay tax to him. pl guide me.
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On 16 February 2008 at 13:35
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Chartered Accountant
183 Points Joined November 2007
in first year you can take the benefit of exemption and pay tax only above Rs. 8 lac subject to no cenvat credit.
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On 16 February 2008 at 13:41
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Service ( in DLF Ltd)
25 Points Joined January 2008
Service receiver will pay the S. Tax CA.Kamlesh Prajapati
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On 19 February 2008 at 10:10
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CA
47 Points Joined February 2008
Rs 800000 limit is for particular person in relation to all the receipts during the year. u are required to pay service when total receipts from all small tenants are more than 8 lacs in relation to single person. However for current year u may not be required to pay as service is notified from 01-06-2007 and dept cannot collect tax for period before which service is notifed.More over you will not in receipt of estimated Rs 960000 from june-07 to Mar-08 period Any how from next year u are required to pay service tax.
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On 19 February 2008 at 13:42
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458230 Points Joined August 2012
Please clarify whether TDS will be be deducted on Rent after charging service tax or only on the Rent before charging service tax.
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On 29 February 2008 at 15:09
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458230 Points Joined August 2012
Thanks your view is become realy helpful to me
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On 02 March 2008 at 20:09
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458230 Points Joined August 2012
Register as guest.
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On 07 March 2008 at 18:11
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458230 Points Joined August 2012
SERVICE TAX ON RENTAL INCOME FROM LET OUT A COMMERCIAL PROPERTY.
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On 07 March 2008 at 18:13
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458230 Points Joined August 2012
in the company where i am working ,my land owner has raised the point of service tax on renting the immovable property.My doubt is whether i can take the basic exemption limit of 8 lacs while i am calculatinh the tax of 12.36%.i am paying a rent of 124710 p.m. My other doubt is from which month i should caculate the tax. Is it from 01-06-2008.
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On 08 March 2008 at 17:51
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458230 Points Joined August 2012
normally it is known that tds is deducted on rental payments.I am paying a rent of Rs1,24,710 per month . I am suposed to deduct a tax of Rs.21195 per month @ 16.99%as tds for i.t. now my doubt is that wheather i should pay the service tax on 124710/-or on 103515/-(after tds). please clarify
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On 08 March 2008 at 19:29
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458230 Points Joined August 2012

Sir Actually we are running a computer training centre franchisee unit as well as a Pre-School in a building. The total rent that we are paying to the owner for the premises is 1.25 lacs which is split into 7 cheques in 7 names to the owner. The owner says that we are liable to pay him the service tax on 1.25 lacs. Is it right ? Actually is it possible for us to claim any exemption and if so how? Pls help

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On 15 March 2008 at 17:17
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458230 Points Joined August 2012

Hi Mr.Himanshu, We are running a computer training centre franchisee unit as well as a Pre-School in a building. The total rent that we are paying to the owner for the premises is 1.25 lacs which is split into 7 cheques in 7 names to the owner. The owner says that we are liable to pay him the service tax on 1.25 lacs. Is it right ? Actually is it possible for us to claim any exemption and if so how? Pls help

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On 15 March 2008 at 17:18

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