Service tax on Rental Income

Service Tax can be levied jointly on both the owners only when it is established that they are into this venture as partners. Merely because they are joint owners, or co owners- inference os partnership cannot be drawn. Partnership is a subject matter of individual agreements- it cannot be imposed on individuals.

The joint owners can make a private agreement among themselves specifying that they are not partners and they will be entitled to rental income in proportion of their interest in the property. In that case, both the individuals shall be eligible for Small Scale exemption individually.

Hi, one of my client is receiving rental income for more an amount of Rs.60Laks p.a. It is let out for 2 major hotels & for boarding. Does this attract service tax.

Hi Aruna, buildings used for hotels & boardings are exempt from service tax.

I have rented a room for office, since June 2009 @ Rs.5000 per month and have been paying the landlord accordingly. Now in the month of December 09 the landlord has issued notice to us that at the time of signing agreement the service tax was not applicable and hence it was not charged to us. But we have to pay the service tax @ 10.20% to him now wef October 2009 since he has registered his Accounts from November 2009 and we must give him the amount  of service tax so that he can pay to Service Tax Deptt.

 This additional burden is too much for our small business firm. There was no mention in the agreement with landlord that any such additional burden are to be passed on to tenant. I seek advise from members, whether the Service Tax is payable by us or not. I feel that the service tax may be paid by the landlord and not imposed on us, since no such provision in agreement exists.

We have given our building on rent for RESIDENTIAL purpose to A @ 4,00,000 per month and ground floor to B for commercial purpose @ 15,000 per month. whether we are liable to pay service tax?

for commercial portion, if the rent is exceeding 10L/ annum then service tax liable.

Hai

I have a doubt on Rental Service Tax.., My rental income exceeding 20Lacs permonth.., and I have various tenants on premises,but one of the tenant has paying Rs.10,000/- per month (Per Year 1,20,000).in this case he does nt pay service tax on that. he says that "yearly rental payment not exceeding Rs.10 Lacs thats way we need not to pay Service Tax to U". in this case shall I pay/liable to Service Tax dept on Rs.10,000/-. or can I omit Service tax payment.

pls clarify my doubt

Jayakrishna

and I have one more doubt...

Rental service tax payment is recepit basis or provisinal basis.

pls clarrify this one also

Originally posted by : jayakrishna somisetti
	Hai I have a doubt on Rental Service Tax.., My rental income exceeding 20Lacs permonth.., and I have various tenants on premises,but one of the tenant has paying Rs.10,000/- per month (Per Year 1,20,000).in this case he does nt pay service tax on that. he says that "yearly rental payment not exceeding Rs.10 Lacs thats way we need not to pay Service Tax to U". in this case shall I pay/liable to Service Tax dept on Rs.10,000/-. or can I omit Service tax payment. pls clarify my doubt Jayakrishna

10L service limit is for provider, not for receipent, you have to charge service tax on even 100/- per month as your turnover is over 10L per annum

Originally posted by : jayakrishna somisetti
	and I have one more doubt... Rental service tax payment is recepit basis or provisinal basis. pls clarrify this one also

from 1-7-11, its on accural basis, i.e for the month of june rent u have to pay by july 5th, irrespective of fact that payment is received or not.

Thank U US Sharmaji

Thank U US Sharmaji

service tax applicable on rental income exclusively used for residential purpose?

we are  let out our property to bank , gross  rental income is 14 lakh ,we are joint owners ,the service tax will be levied on rent received. Please guide to me,

whether service tax is apllicable on mere Collection of Rent on behalf of others for ex. A is collecting rent (including Service Tax which has been paid to C.G.) from B on behalf of C, now C is demanding is Service Tax from A on this same value of Rent.