Please Help: service tax on renting of immovable property owned jointly
Posted Date : 11-Sep-2011 , 01:48:01 am | Posted By: Chetan Agrawal
Category :
Service Tax | Answers :
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In case an immovable property is owned jointly by three owners and the property is rented for commercial purpose to a concern and all the three co-owners receives the rent equally and seperatly as per the contract entered between the co-owneres and the tenent, whether all three co-owners are eligible to avail the exemption Rs. 10 lacs of small service provider under n.no 6/2005. please provide legal provison in this regard and if possible please provide any judgement if any delivered in this regard. |
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| Posted By : Chetan Agrawal |
11-Sep-2011, 11:27:19 |
| Dear Yogesh, thanks for your resopnse. I to is of the same view. But what i required was any legal provision/judgement in support of this view. Bacause what happen actually in this case was that AO is treating the three owners as an AOP ( and thus a single service provider) and allows exemption only of Rs.10 lacs and not separetly to each individual. |
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| Posted By : Yogesh |
11-Sep-2011, 06:27:22 |
| Applicability of service tax depends upon the status of receiver of rent. If an individual person receives it in his personal capacity as co-owner then each of the co-owner is eligible to avail exemption of Rs. 10 lacs. |
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