Godowns are co-owned by by four persons with definite share
1.m- 35% , a- 20% , p-20%, pj 25%. registered land deeds are executed in their favour individually.
2. Rent is received individually with their pan .
3. Depatrment has issued SCN to Co-ownership to deposit service tax.
Now individually two persons are registered and paying tax.But two have receipts less than 9 lacs so not registered.
Please guide whether co-ownership should pay or individually.
Co-owners of godowns can claim service tax exemption individually if receipts are below 9 lakh, per case law. Four individuals co-own godowns and receive rent individually, with two registered for service tax and two not, as their receipts are below 9 lakh. A service tax notice was issued to the co-ownership. A consultant referenced a judgment allowing individual owners to claim exemption if their aggregate taxable services do not exceed the threshold. The judgment supports the argument that co-owners paying tax individually are not liable collectively. The case law cited suggests that each owner can benefit from the exemption, and the co-ownership should not be liable for additional service tax. (AI Summary)
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