Service tax on rental income

mani (engineer) (38 Points)

12 October 2015  

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