TaxTMI 
TaxTMI 
Service tax applicability on proportionate amount
22 Apr 2006 
1 Reply 
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Service tax on maintenance charges applies when those services are separately identified apart from rent.
There is no service tax on rent from letting immovable property, but where maintenance and other service charges are separately identified and ascertainable apart from the rent they constitute taxable services and are liable to service tax; if services are genuinely bundled into rent they cannot be notionally bifurcated to levy tax. (AI Summary)
There is no service tax on rent from letting immovable property, but where maintenance and other service charges are separately identified and ascertainable apart from the rent they constitute taxable services and are liable to service tax; if services are genuinely bundled into rent they cannot be notionally bifurcated to levy tax. (AI Summary)
x & y are the owners of property 'Z'. They let out property 'Z' on rent to a company. rent agreement includes maintenence of lift, common area & common lightning ,power back up,security services etc.Further as per rent agreement rent @40000/= per month is charged (incl.maintenence & other services).But on the company letter's head company has indicated to x & y (after rent agreement) that it is paying 30000/= as rent and balance 10000/= as maintenence charges.query is service tax is payable on what amount n why.