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

Company Renting from Directors Faces Service Tax Query; Owners Liable, Exemption Limit Applies A private limited company engaged in manufacturing and trading is renting premises from two directors at 200,000 per month. The query raised concerns whether there is a service tax liability on this rent and who is responsible for its payment. Responses indicated that the premises owners are liable for the service tax, and they can avail themselves of a 10 lakh exemption limit.