Service Tax for Joint property

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  1. Mana Swamy

    Mana Swamy New Member

    I and my friend jointly own a commercial property 50-50 ownership. The rent is Rs 17,50,000 per annum which will be split 50-50 between us. I live in UK and have no other income in India. My friend who resides in India owns other properties and draws additional 18L per annum as rental income and is already registered under service tax and pays service tax on his other property.

    For the commercial property we co-own my share of rent is 8,75,000 per annum and as stated have no other source of income in India. The question is since my partner already falls under the service tax purview how is the Service tax applied to the jointly owned property ? Should we collect and pay service tax for my portion of rent just because my partner is already a Service Tax payee. How is Service Tax applied in my joint property
    Scenario ?
  2. Neha Sharma

    Neha Sharma Active Member

    In this case, it is mandatory for your friend to collect and pay Service Tax as he is drawing Rent over Rs. 10 Lakh

    However, as you are only receiving Rent and that too below Rs. 10 Lakh, it is optional in your case to collect and pay. you may or may not collect Service Tax but in case you collect Service Tax, you would be required to deposit the same with the Govt.
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