Sir,
I am having a big multible complex, containing shops and a kalyana mandabam. I have rented the shops to different persions, and the mandabamhall and dining is Leased to another two persio for nominal rent..
All individuals are filing their own income tax and all are within the limit of service tax.
When calculating the service I am cluping all my rents for service amount. Is necessary to clup all other parties service income to my account,
Please clear the view.
Property Owner Clarified on Service Tax: Calculate Only on Direct Rent, Exceeds Rs. 10 Lakhs for Full Applicability. A property owner with a complex containing shops and a hall sought advice on whether to combine rents from various tenants for service tax calculation. Responses clarified that the owner is only responsible for the rent they collect directly. Service tax should be calculated on the total rent received by the owner, not including tenants' service income. If the property is indivisible, service tax applies to the entire rent amount before any division among owners. If the total rent exceeds Rs. 10 lakhs annually, it is subject to service tax without exemption. (AI Summary)