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2019 (2) TMI 862 - AT - Service TaxRenting of immovable property - inherited property - joint owners - association of persons or not - demand of service tax on co-owners when the property is jointly owned by them - SSI Exemption - Held that:- When family members come together to rent property belonging to the family or inherited by operation of law, it cannot be considered as an ‘association of persons’. The levy of service tax on Renting of Immovable Property is on the income received from the service provided. The co-owner can lease only that part of the property belonging to him. The Tribunal in the case of Sarojben Khusalchand Vs. C.S.T. [2017 (5) TMI 240 - CESTAT AHMEDABAD] had occasion to analyse the very same issue as to whether co-owners can be considered as an association of persons and it was held that it is difficult to accept the proposition advanced by the Revenue that all the co-owners providing the service of renting of immovable property be considered as an association of persons and the service tax on the total rent be collected from one of the co-owners. SSI Exemption - Held that:- For verification as to whether these appeals fall within the threshold limit, it is necessary to remand the matter back to the adjudicating authority for the limited purpose of verifying the threshold limit of the individual co-owners, as may be applicable during the relevant periods of dispute. Appeal partly allowed and partly remanded.
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