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2019 (6) TMI 16 - AT - Service TaxThreshold limit for liable to pay service tax - ‘Renting of Immovable Property Services - co-owner of the Complex - HELD THAT:- The property has been purchased jointly by the appellant and her husband Shri. M.S. Paramasivam. Several lease agreements have also been produced before us. Some of the lease agreements are entered into by both the appellant and her husband. It is very much brought out by the documents that the appellant is not the absolute owner of the property “Lakkshmi Arcade”. The sale deed as well as the related documents shows that the property is owned jointly by the appellant and her husband. The contention of the Department that in the land revenue records the name of the appellant alone is shown cannot be made the basis for confirmation of the demand, especially when there is no proof that the village records have been updated. It is not disputed that the income by way of rent is received by them separately and reflected in their income tax returns separately. This being the case, the mere reliance on the land revenue records is not correct. When the property is owned jointly by the appellant and her husband, the demand of service tax raised on the appellant alone, therefore, cannot be sustained. Ld. Advocate for the appellant also contends that if the rent is shared between the appellant and her husband, they would come under the threshold limit - This aspect, however, requires verification. If the rent received by the appellant separately is below the threshold limit during the disputed period, then the appellant would not be liable to pay service tax. Appeal allowed by way of remand.
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