TaxTMI 
TaxTMI 
Service Tax on Renting of Immovable Property
X X X X Extracts X X X X
X X X X Extracts X X X X
....ervice Tax on Renting of Immovable Property<br> Query (Issue) Started By: - R MUTHURAJ Dated:- 22-10-2013 Last Reply Date:- 28-10-2013 Service Tax<br>Got 3 Replies<br>Service Tax<br>Hi, An Individual has an apartment containing 5 Flats meant for residential purpose. He is collecting Rs.6 lacs p.a as rent from each flat and in total Rs.30 lacs. 1 Flat is rented for running office and rest of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....4 Flats are residential. In this case whether service tax is needs to paid? What would be the case, the 1 Flat used for running office had been used as the Guest House of the Company? Seeking experts opinion. Thanks & Regards, R.Muthuraj Reply By PAWAN KUMAR: The Reply: As per my view, service tax is to be levied on rent received towards one flat being used as guest house. Remaining rent r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eceived towards four flats fall under negative list as per 66D (m). Reply By Rajesh Sharma: The Reply: Here is the answer of your query, which has been elaborated under bundled service and the illustration is as under: • A house is given on rent one floor of which is to be used as residence and the other for housing a printing press. Such renting for two different purposes is not naturall....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y bundled in the ordinary course of business. Therefore, if a single rent deed is executed it will be treated as a service comprising entirely of such service which attracts highest liability of service tax. In this case renting for use as residence is a negative list service while renting for non-residence use is chargeable to tax. Since the latter category attracts highest liability of service t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ax amongst the two services bundled together, the entire bundle would be treated as renting of commercial property. Hope that will solve your query. Reply By MANDAVILLI RAMAKRISHNA: The Reply: separate lease deed to be entered into. only commercial rents are taxable subject to threshold limit residential purpose rents are not taxable ( the plan of the building should also be a residential on....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e and not a commercial building plan as precuation<br> Discussion Forum - Knowledge Sharing ....