How to save Service Tax on Rent?

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  1. Parul_Gupta

    Parul_Gupta Active Member

    You can save tax through both the methods.

    However, in my personal opinion - the maintainence method is better. You can either show that you have provided a furnished accomodation or maybe provided them with some other services related to Office Building.
  2. brAjith

    brAjith New Member

    Please see the link below:
  3. Parul_Gupta

    Parul_Gupta Active Member

    If you think - the sub-letting method is safe - you can opt for that as well.

    In the sub-letting method - the Tax Officer can easily recognise that you have formed this arrangement only to evade Service Tax.

    Whereas, in the Maintanenece Method, it is not easy for the AO to check. Moreover, if you show that you have maybe given them furniture on rent or maybe you car on rent - in that case - you can easily justify and in my opinion - the Tax Officer wont cause any problem.

    You can opt for any method as you deem fit. At the end of the day, both the methods are unethical ;)
  4. brAjith

    brAjith New Member

    Thank You very much for your advice. Hope the service exemption limit is increased to 15 lakhs or higher in the next budget, to save us individuals from registering for service tax and maintaining all the records etc.
  5. Parul_Gupta

    Parul_Gupta Active Member

    I wish the service tax limit was increased to Rs. 15 Lakhs..

    The limit of Rs. 10 Lakhs is too low and it has not been increased since many years....
    brAjith likes this.

    VIKASVIKAS New Member

    Yes u can split the amount of rent to save the service tax if such rented building is co-owned by your wife also.
    if u r 100% owner of such rented building than it,s not possible to split your rented income.
    rudrabose likes this.
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