Service tax questions on commercial rental

Dear Purple Yogi,

Both the things are liable to service tax. But you are entitle to a value based exemption of Rs. 10 Lakh as you have not received any rent during the preceding financial year. You need to register yourself on reaching the total rent of Rs. 9 lakh & you will be liable to pay service tax over & above 10 lakh i.e. on 20 thousand rupees. You need not charge now any service tax but once you cross 10 Lakh you need to charge & collect service tax on balance 20 thousand.

In the next financial year, you will not get any exemption as your gross rent during the preceding financial year would exceed 10 Lakh. So you need to pay the service tax right from the first rent i. e. April 13 unless the value based exemption limit is enhanced by the finance budget of the next year.

Thanks for the info. Do i need to register right now to avail the exemption? SHould I apply for it ? or is it automatic?

Hi, 

Sorry for seeming to ask same question again. But here are some more details

For us, rent for premises is 85000Rs/month and rent for amenities is 40,000Rs/month. 

1) Do we get 2 different 10Lakh exemptions for premises and amenities?

2) Confirming that ameneties rent is also liable for service tax. 

We could also use the advice of expert CA in Hyderabad - any recommendations?

thanks for all the advice

Hai,

      Myself sathish am having commercial property in G.S.T ROAD now  am leaving for  reant for first time  and reant amount consist of one lakhs for this amount I need to pay service tax , weather

 I need to collect service tax from tenon .

Hai,    

             Myself sathish am having commercial property in G.S.T ROAD now  am leaving for  reant for first time  and per month reant amount consist of one lakhs for this amount I need to pay service tax , weather I should  collect the service tax from tenon or land himself  should  pay.

Dear Purple Yogi,

As you mentioned that the property is held jointly by you and your mother. As tax planning measure, you may enter into contract with your tenants in such a way that the total rent + amenities (85000+40000=125000) is so divided that each of your's taxable turnover is below Rs. 10 Lacs and you both can avail the service tax exemption vide N/N-33/2012 for all the years till the total consideration is Rs. 1,66,666/- per month.

I have assumed that you are not providing any other taxable service.

Kindly consult come Expert.