TaxTMI 
TaxTMI 
If one party 'A' is owner of property which he gives on rent to some tenants for commercial purpose and through Auction, 'A' sells the rights of collection of rent from the tenants to other party 'B' for amount of ₹ 50 Lacs per annum. 'A' receives ₹ 50 Lacs from 'B' per year. Is there any Service Tax liability on 'A' in the said case, if so, under which Service Tax category the service would be classifiable.
Service Tax on right of collection of rent
08 Dec 2015 
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Service tax on assignment of rent-collection rights depends on characterisation as actionable claim or taxable rental/service.
Whether consideration for assignment of rent-collection rights is taxable depends on classification: it may be an actionable claim (not taxable) or treated as rental income of the owner (taxable). If regarded as service activity, the collector may be liable under Renting of Immovable Property, Recovery Agent Services, or Business Support Service, with the contract terms and nature of collection determining the applicable category. (AI Summary)
Whether consideration for assignment of rent-collection rights is taxable depends on classification: it may be an actionable claim (not taxable) or treated as rental income of the owner (taxable). If regarded as service activity, the collector may be liable under Renting of Immovable Property, Recovery Agent Services, or Business Support Service, with the contract terms and nature of collection determining the applicable category. (AI Summary)