renting of co-owned property

[Satbir singh wahi]

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.

AI Summary

Renting of immovable property services: individual co owners can claim small service provider exemption when rents are received separately.
The issue is whether co owners renting common property are jointly liable or may be treated as individual providers for claiming the Notification No. 6/2005 ST exemption. Where title and receipts are in each owner's name, tribunals have applied the rule that aggregate value is the measure for threshold analysis but individuals who receive rent separately can be regarded as individual providers for the small service provider exemption, affecting registration and pre deposit compliance.