Service tax applicable on immovable property on land & buildind & other structure

pooja dedhia (Querist) 13 November 2012 This query is : Resolved
My father has firm and let out the property to private co whose paid up capital is below rs 1 cr.

fIRM RECEIVE THE RENT P M 165000 ON IMMOVABLE PROPERTY I.E. LAND & BUILDING WITH OTHER STRUCTURE.

LL FEES PER MONTH rS 165000
LET OUT PERIOD 11 MONTHS -NOV 2012 TO OCT 2013.

IS LIABILITY OF SERVICE TAX IS APPLICABLE TO PARTNERSHIP FIRM FROM THE PRIVATE CO?

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Anirudh (Expert) 13 November 2012
Yes, service tax is applicable as the property has been let out for commercial purpose.

pooja dedhia (Querist) 14 November 2012
is Revers mechanism is applicable?
if the leave and licence fees for the period nov 2012 to mar 2013 do not exceed to rs 9 lacs,still licencor or licensee has to pay service tax?

Anirudh (Expert) 14 November 2012
Reverse mechanism is not applicable in this case.

If the licence fee does not exceed the threshold limit of Rs. 10 lakhs, then the question of service tax will not arise. Since you know the threshold limit, you should not have asked this second question at all.