Service tax on rent
Knowledge Gainer
(Querist) 30 May 2013
This query is : Resolved
There is a shop in mall owned by 4 different persons jointly. The said shop has been given rent for Rs. 25,00,000/- p.a. on on leave and license basis. The agreement has been entered jointly by Co-owners stating that the each co-owner will receive the amount equivalent to their respective share in the rent directly from licensee. Thus every co-owner will receive Rent of Rs. 6,25,000/- collectively Rs. 25,00,000/-.
The query is that in this case whether service will be applicable or not either jointly or to every co-owner individually?
Anirudh
(Expert) 31 May 2013
Since each of the co-owner will be receiving less than Rs. 10 lakhs (which is the threshold limit for the purposes of attracting service tax), there will be no service tax liability in the given fact situation.
Raj Kumar Makkad
(Expert) 31 May 2013
No tax liability shall be fastened over the individual landlords/owners in the given case.
