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TMI BlogService Tax on Renting of Immovable PropertyX X X X Extracts X X X X X X X X Extracts X X X X ..... Hi, An Individual has an apartment containing 5 Flats meant for residential purpose. He is collecting Rs.6 lacs p.a as rent from each flat and in total Rs.30 lacs. 1 Flat is rented for running office and rest of the 4 Flats are residential. In this case whether service tax is needs to paid? What would be the case, the 1 Flat used for running office had been used as the Guest House ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Company? Seeking experts opinion. Thanks Regards, R.Muthuraj - Reply By PAWAN KUMAR - The Reply = As per my view, service tax is to be levied on rent received towards one flat being used as guest house. Remaining rent received towards four flats fall under negative list as per 66D (m). - Reply By Rajesh Sharma - The Reply = Here is the answer of your query, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich has been elaborated under bundled service and the illustration is as under: A house is given on rent one floor of which is to be used as residence and the other for housing a printing press . Such renting for two different purposes is not naturally bundled in the ordinary course of business . Therefore, if a single rent deed is executed it will be treated as a servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e comprising entirely of such service which attracts highest liability of service tax. In this case renting for use as residence is a negative list service while renting for non-residence use is chargeable to tax. Since the latter category attracts highest liability of service tax amongst the two services bundled together, the entire bundle would be treated as renting of commercial pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perty. Hope that will solve your query. - Reply By MANDAVILLI RAMAKRISHNA - The Reply = separate lease deed to be entered into. only commercial rents are taxable subject to threshold limit residential purpose rents are not taxable ( the plan of the building should also be a residential one and not a commercial building plan as precuation - Service Tax on Renting of Immova ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Property - Query Started By: - R MUTHURAJ Dated:- 22-10-2013 Service Tax - Got 3 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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