Exemption availability on rent received, Service Tax

[RAKESH GARG]

I have given a property to a company on which I receive annual rent of Rs. 500000.00. Whether I have to charge service tax on that or a exemption of Rs. 8,00,000.00 is available to me. Please also advise if the property is let out to company with five other coowners. and each getting Rs. 5,00,000.00 Then what will be the position regarding service tax. Please advise.

Posts / Replies

[Madhukar N Hiregange]

ST is on the service receiver and not on the property. Therefore the 8 lakhs exemption would be available to you as long as you do not provide any other taxable servcie. Co -owners who each receive less than 8 lakhs also would not be liable.