Service Tax on Rental Income

POSTED BY Varun Bhatia ON November 25, 2012 6:25 pm COMMENTS (5)

I recently read the article http://www.simpletaxindia.net/2012/06/service-tax-on-renting-of-immovable.html.

Can someone put more light on the subject. Specifically I want answers to following questions:-

 

  1. Is the service tax to be paid by me or the landord?
  2. How much service tax needs to be paid?
  3. Is the landlord exempted from paying service tax under any circumstances if he/she exceeds a particular age or income bracket?

 

5 replies on this article “Service Tax on Rental Income”

  1. Varun Bhatia says:
    December 31, 2012 at 1:05 pm

    Thanks! I am saved from this service tax.

    Reply
  2. Sanjay says:
    December 31, 2012 at 1:03 pm

    Pl note that Service Tax on Rental income is payable only for Commercial property.

    For Residential property, ST is payable only if you have leased it to a company for Rent more than Rs 1.8L pa.

    If you have rented your residential property to an individual, then ST is not payable by Tenant or Landlord.

    Reply
  3. Sanjay says:
    December 31, 2012 at 1:03 pm

    Pl note that Servic eTax on Tental income is payable only for Commercial property.

    For Residential property, ST is payable only if you have leased it to a company for Rent more than Rs 1.8L pa.
    If you have rented your residential property to an individual, then ST is not payable by Tenant or Landlord.

    Reply
  4. Varun Bhatia says:
    December 31, 2012 at 12:54 pm

    I am a landlord of the property which earns more than 180000/- yearly as rental income. The property is rented for residential purposes. Does it still attract service tax under the new laws

    Reply
  5. Ashal Jauhari says:
    December 28, 2012 at 7:57 am

    Dear Varun, here I’m trying to answer your query.
    1. The basic liability of ST is on landlord who in turn may pass it on you. Just like our phone bill.

    2. 12.36% is the rate.

    3. No the ST liability is different from income tax liability. The basic exemption from ST is 180000 rs. Yly rent.

    Thanks

    Ashal 

    Reply

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