Service Tax Liability

[Guest]

I am expecting this year my rental income from commercial property will cross ₹ 10 lac.

My liability starts from the date I cross the limit or from the date of agreement i.e fist april 15.

[Guest]

Service tax registration liability arise when limit exceed rs. 9 Lac and liability to pay tax arise when limit exceed rs. 10lac. So your liability will arise from the date limit exceed rs. 10 lac. You have to pay the tax on amount exceeding rs. 10 lac. eg. in 2015-16 amount of taxable service becomes 15 lac, then you have to pay the tax on 15-10=5 lacs

Regards

AI Summary

Service Tax Liability on Commercial Rent: Registration at 9 Lakh, Taxable Over 10 Lakh, Pay on Excess Amount Only. A user inquired about service tax liability concerning rental income from commercial property expected to exceed 10 lakh. The response clarified that service tax registration is required once the income surpasses 9 lakh, and the obligation to pay tax begins when it exceeds 10 lakh. Tax is payable only on the amount exceeding 10 lakh. For instance, if the taxable service amount reaches 15 lakh, tax must be paid on 5 lakh.