Service Tax on rental Income.

[Neha Bohra]

Resident of India having 2 properties,

One House Property Located at USA let out for Residential purpose and One property located in India Let out for Commercial purpose

Whether Rent From both of the property Included in Taxable amount for the purpose of service Tax?????

(my observations are

1st if property let out for residential purpose then it would not be included in Taxable turnover(covered in negative list) therefore Only Indian rent is taxable as property given for commercial purpose.

2nd Observation on the basis of place of provision rule if Person providing services more than one location including a location in taxable territory, its place of provision in taxable territory.)

AI Summary

Rental Income from USA Residential Property Exempt from Service Tax; Indian Commercial Property Income Taxable Under Service Tax Rules. A forum user inquired about the applicability of service tax on rental income from two properties, one in the USA for residential use and another in India for commercial use. It was clarified that rental income from the USA property is not subject to service tax due to its residential nature and location outside India, as per the negative list and place of provision rules. However, rental income from the commercial property in India is taxable under service tax regulations.