Registration of service tax - exemption limit, Service Tax

[Bhuvnesh]

Renting of immovable property by Co-owners There is a single property let out for commercial purpose. Out of 4 Co-owners 2 are getting annual Rent Rs. 9 Lacs and other 2 are getting annual rent of Rs. 6 Lacs. Now does all the 4 co-owners need to get registered and pay service tax or only those crossing the threshold limit need to get registered and pay service tax. Regards

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[V Ramanujam]

The threshold limit of applicability should be calculated on 'service provider' wise and not on property wise. Hence, in such case, two co-owners whose annual service income exceeds the limit should register, raise separate bill charging service on their portion of rent and pay it to the Govt. Other co-owners need not register, charge and pay service tax if their overall service income (including any other services rendered by them) does not cross the threshold limit. I am of the view that any deduction on service tax liability such as property tax and CENVAT on input services should also be claimed proportionately.