Service Tax on Commercial Rentals

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  1. Neha Sharma

    Neha Sharma Active Member

    I'm in CA Final and undergoing Training with a practicing CA.... My boss guides me with everything...
     
  2. Satishg

    Satishg New Member

    That's great to know that being a student you are still able to guide people. Which place are u doing your articles from? I qualified way back in 1995 and also did CWA and CS. Now working in Industry since 1995.
     
  3. Neha Sharma

    Neha Sharma Active Member

    I'm based in New Delhi...
     
  4. Sheldon Xavier

    Sheldon Xavier New Member

    I think you should consult a good solicitor he would give you the correct advice. To read more related queries see my website.
     
    Last edited: Feb 17, 2014
  5. brAjith

    brAjith New Member

    Can I avoid paying service tax on rent income, if I rent part of the building to my wife, who in turn sub leases or rents out that part also to the same party to whom I have rented the otjher portion of the building. That way can we split the rental income to make it below 10 lakhs per year for each of us?

    Please clarify. For income tax purposes, I shall show the total rent income in my name.

    Ajit
     
  6. Satishg

    Satishg New Member

    I have a follow up question relating to Service tax on commercial property. I am a lessor of a commercial property and the aggregate rental from the property is exceeding Rs. 10.00 lacs in the month of March 2016. Does that mean that service tax laibility will arise only from the month of March 2016 or for the full financial year 2016. Secondly I am paying property Tax on this property amounting to Rs. 58000/- hence then net rental after deducting the property tax would fall below Rs. 10.00 Lacs for the financial year 2015-16. Would I still be liable for payment of service Tax. If the answer to the second question is no, then would the lessee would still be liable to pay service tax under reverse charge mechanism. Your quick reply would be highly appreciated.
     
  7. jinal mehta

    jinal mehta New Member

    I have a query that if company is making agreement with another company and going to charge service tax as rent exceeds 10lacs pa, as in company owner is single and not more as per discussion for this question.
     
  8. Piyush Chawla

    Piyush Chawla Active Member

    @jinal mehta : Please elaborate your query. It is not clear from the facts provided above.
     
  9. venuvaranasi

    venuvaranasi New Member

    Can I avoid paying service tax on rent income, if I rent part of the building to my wife, who in turn sub leases or rents out that part also to the same party to whom I have rented the otjher portion of the building. That way can we split the rental income to make it below 10 lakhs per year for each of us?

    Please clarify. For income tax purposes, I shall show the total rent income in my name.
     
  10. venuvaranasi

    venuvaranasi New Member


    Can I avoid paying service tax on rent income, if I rent part of the building to my wife, who in turn sub leases or rents out that part also to the same party to whom I have rented the otjher portion of the building. That way can we split the rental income to make it below 10 lakhs per year for each of us?

    Please clarify. For income tax purposes, I shall show the total rent income in my name.
     
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