Renting of immovable property

[RAJESH MENDIRATTA]

This is in reference to issue relating to Service Tax of renting of immovable property. what is the exemption limit of Service tax on renting of immovable  property when the premises is in the name of three persons, however they are not partners. Since this property is in the name of three persons whether the registration will be obtained in any of the three persons as co applicant or any other way and how the service tax  will be paid in that case if the registration is obtained in the name of one person.  Since all the three persons are individual and not the partners, what is procedure for registration and how the ST will be paid.

                Under the circumstances stated above, let us know the procedure of obtaining the service tax registration and payment of service tax.

AI Summary

Clarification Sought on Service Tax Exemption Limit for Jointly Owned Property by Non-Partners Under Service Tax Rules A query was raised regarding the service tax exemption limit for renting immovable property owned by three individuals who are not partners. The issue concerns how service tax registration should be handled and paid when the property is jointly owned. Responses suggested considering whether the co-owners have a single agreement, shared property management, a single identification number, separate tax deductions, and payments. It was noted that small-scale exemption might be available on a per-person basis. The discussion focused on the procedural aspects of service tax registration and payment for co-owned properties.