renting of co-owned property

[satbir singhwahi]

Property is co-owned with definite share and it is let out , rent is received individually with individual PAN and TDS.

Whether Service tax on Individuals or Joint coownership.

Department quoting Supreme court in the case of Raman Lal Bhai patel Vs. State of Gujarat 2008 (2) TMI 859 - Supreme Court Of India in civil appeal no. 4420 of 2004, in which to a question as to whether co-owners together are a person or not , the honourable SC in para 21 of the judgement has specifically held that '' if the co-owners proceed further and enter into an arrangement or agreement to have a joint enterprise or venture to produce a common result for their benefit , then the co-owners may answer the definition of person''

Pl guide .

AI Summary

Debate on Service Tax: Should Co-Owners of Rental Property Be Taxed Individually or as a Joint Entity? A discussion on a forum addresses whether service tax should be applied to individual co-owners or as a joint entity when renting out co-owned property. The department references a Supreme Court case, suggesting co-owners could be treated as a single entity if they engage in a joint enterprise. However, contributors argue that each co-owner should benefit from the individual tax exemption threshold of 10 Lacs, as clarified by existing guidelines, and that the Supreme Court ruling is not applicable here due to differing circumstances. The consensus supports individual tax treatment over joint treatment.