Service Tax on Rent given to Director / partner

[Mehul Pandya]

Sir,

Pl. advice that our is a private limited company engaged in manufacturing doors and doing trading business of timbers. Premises owned by 2 directors jointly and we are giving them rent ₹ 200,000/- per month. Hence my question is that is there any service tax liability ? if yes who will be responsible to pay the tax ?? is there any noti./circular in that reference is available.

[Mahir S]

The owners of the premises have to pay service tax

[Mehul Pandya]

They can avail 10 lakhs exemption limit ???

[Mahir S]

Yes sir..

Naveed

AI Summary

Service tax liability on rent may render the property owners liable to pay, with an available exemption threshold. Company pays rent to premises jointly owned by two directors and asks whether service tax applies and who must pay. Replies state the premises owners (landlords) are responsible for paying service tax on the rent receipts, and contributors note an available exemption threshold that may affect liability, without citing a specific statutory provision or ruling.