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of <h1>Individuals renting out property: Tribunal exempts service tax, waives pre-deposit</h1> <h3>MRS VAMINI NITIN KUMAR SHAH & OTHS. Versus COMMISSIONER OF SERVICE TAX, AHMEDABAD</h3> MRS VAMINI NITIN KUMAR SHAH & OTHS. Versus COMMISSIONER OF SERVICE TAX, AHMEDABAD - 2013 (31) S.T.R. 239 (Tri. - Ahmd.) Issues:Service tax liability on individuals as providers of service under the category of renting out of immovable property.Analysis:The judgment pertains to applications filed for waiver of pre-deposit of service tax liability, interest, and penalties under Section 77 & 78 of the Finance Act, 1994. The issue involved is the service tax liability on individuals as providers of service under the category of renting out of immovable property. The individuals are co-owners of a building and have rented out the premises collectively. The Revenue sought to charge service tax liability individually on the persons, considering the amounts received collectively. The Revenue argued that the property being jointly owned and rented out constitutes a service of renting out an immovable property. However, the appellants claimed SSI exemption under Notification No. 6/2005-ST dated 1.3.2005 and its amendment, as the aggregate value of services rendered by individual appellants did not exceed the threshold limit.The Tribunal found that the appellants, as co-owners of the property, received rent individually from the tenant. The Tribunal noted that the SSI exemption notification grants exemption if the aggregate value of taxable services rendered does not exceed the threshold limit. Considering that individually all appellants could be considered as providers of the service, their aggregate value did not surpass the threshold limit. Therefore, the Tribunal concluded that the appellants had made a case for waiver of pre-deposit of amounts involved. Accordingly, the applications for waiver of pre-deposit were allowed, and recoveries were stayed pending the disposal of appeals.In summary, the Tribunal analyzed the service tax liability issue concerning individuals as providers of renting out immovable property service. It considered the SSI exemption notification, individual receipt of rent, and the aggregate value of services rendered to determine the applicability of the exemption. The Tribunal granted the waiver of pre-deposit and stayed recoveries until the appeals were disposed of.
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