Threshhold limit of Rs.8,00,000/- applicability on renting of immovable property.

[Guest]

Whether threshhold limit of Rs.8,00,000/- is applicable to renting of immovable property.

[Guest]

Renting of Immovable Property is proposed to be taxed. Notification No. 06/2005 exempts taxable services of aggregate value not exceeding four lakh rupees in any financial year. Now the limit of four lakh is substituted to Eight lakh vide Notification 04/2007 dated 1st March, 2007. This threshold limit is for all services covered under service tax act for a financial year. Renting of Immovable properties for commercial purpose shall also be governed by above notification.

[Madhukar N Hiregange]

yes certainly. the value would be calcuated from the date of notficiation. If notified in May then april rent would also not be a subject matter fo ST

AI Summary

Threshold limit for service tax exemptions applies to renting of immovable property, affecting commercial leases after notification. A statutory exemption threshold for taxable services was raised by Notification No. 04/2007 and applies to renting of immovable property for commercial purposes; the enhanced aggregate-value exemption governs all services chargeable to service tax within a financial year. The aggregation for the threshold is calculated from the notification's effective date, so rents prior to that date are not included in post-notification aggregation for the exemption.