Rent received by Individuals owning Property jointly cannot be clubbed to impose service tax

Last updated: 20 June 2023

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The CESTAT, Chennai has ruled that service tax cannot be levied on the total rent received by co-owners of a property. In this case, the individual rental income of each co-owner was below the threshold limit for service tax. Therefore, the tribunal set aside the demand for service tax, interest, and penalties previously confirmed by the lower authorities.

Court :
CESTAT, Chennai

Brief :
The CESTAT, Chennai in M. Vijayabharathi v. Commissioner of GST & Central Excise [Service Tax Appeal No. 42320 of 2014 dated June 14, 2023]set aside the order levying service tax on total rent received by co-owners jointly and held that the income received as rent by each co-owner is much below the threshold limit to subject the levy of service tax thus, no service tax can be imposed.

Citation :
Service Tax Appeal No. 42320 of 2014 dated June 14, 2023

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1 Year PLAN - Rs.~~1999~~

1799

(Excl. of GST ₹323)

2 Years PLAN - Rs.~~3499~~

3149

(Excl. of GST ₹566)

BEST VALUE

3 Years PLAN - Rs.~~4999~~

4499

(Excl. of GST ₹809)

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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