Service Tax DUAL exemption on Renting of Immovable Property

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  1. krishna.Kapoor

    krishna.Kapoor New Member

    Scenario
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    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

    Doubt
    ******
    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?
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    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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