Service Tax DUAL exemption on Renting of Immovable Property

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  1. krishna.Kapoor

    krishna.Kapoor New Member

    A property owner who has rental income from a commercial shop for Rs.9,99,999 per annum and who also owns a separate hotel who he has rented to a hotel company (who sells the rooms for only less than 999 per day) but the rent paid by the hotel company to the property owner is Rs 1 crore per annum

    Now the property owner can claim exemption from service tax because he is less than Rs.10 lakhs per annum

    Can he also claim the exemption of renting to a hotel whose tariff is less than Rs.1000 per day ?

    What is the exact service tax liability?
    Thanks for your answers
  2. Karan Batra

    Karan Batra Well-Known Member

    The total value of service provided to various organisations is more than Rs. 10 Lakhs and therefore Service Tax would be levied in this case
    krishna.Kapoor likes this.
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