service tax on rent paid

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  1. alben

    alben New Member

    I am planning to open a retail showrrom in my city in a rented shop,And i am paying the rent,Can you please tell me the taxes involved in this transaction?,i heard someone say i have to pay 12.36% as service tax above the rent which i have agreed to pay.
     
  2. rudrabose

    rudrabose Active Member

    Yes, you wld be required to pay Service Tax @12.36% over and above the rent paid.

    However, please confirm the same with your landlord as in some cases the landlord is not required to charge Service Tax.
     
  3. rudrabose

    rudrabose Active Member

    As a general rule, if the total rent received by the landlord from all his properties is more than Rs 10 Lakhs, as per govt norms - he wld be required to charge service tax.
     
  4. alben

    alben New Member

    And if he earns more than 10 lac per annum do we need to deduct 10% as TDS after paying the 12.36% service tax to him and pay it to the goverment.
     
  5. rudrabose

    rudrabose Active Member

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