Service tax on rental income

Queries 568 views 5 replies

Hai All

As per the rule Service tax need to pe paid when the rental income of commercial property is more than 10 lakhs .

I am getting a rental income of 15 lakhs . as the rental income is total of two tenants I am not collecting service tax from the tenant . the auditor informed me that i need to pay 14% as service tax

1.Whether i need to create a separate service tax account

2.Is there any way to reduce the service tax on rental income . 

3. Service tax need to be paid for the total rental income of 15 lakhs or Service tax need to be paid for 5 lakhs (Total income - Limit) (15lakhs - 10 lakhs) 

Thanks a lot

 

 

 

 

 

 

 

 

Replies (5)

Rental Service is covered for Service Tax Liability subject to be over 10 lakh turnover.

You have to be registered with ST Department & Pay ST Liability Quaterly & File Returns Half Yearly.

For the first year only you wil get the exemption of ten lacs.. in future years Service tax will b liable from Rs 1

Thanks for your reply

The Property is rent out for a hotel , is there any exemption to get through abatement on service tax.

 

The ST is payable dependent on what was the taxable service( rent) of pr yr. If pr yr rent less municiapl taxes was less than 10 lakhs then this year upto 10 Lakhs no ST. After that liable at 14% to be paid qualrterly. You can collect from your tenant and if he is eligible for credit he can takle set off.  

Thanks for your reply . Few more queries

1.Can I make a settlement deed or gift deed to my married daughter ao that service tax will not be applicable(When i enquire about i am getting both answer yes and No ).

2..If yes Which deed should be prepared to avoid Service Tax (Settlement deed or Gift deed)

3. Is there any differenence between settlement deed or gift deed

4.Please Clarify If I make a settlement deed or gift deed to my married daughter the income will be accounted only in daughter and not in my account.

 

 

 


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