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.

[YAGAY andSUN]

Dinesh K. Patwa Versus Commissioner of Service Tax

 

[MANDAVILLI RAMAKRISHNA]

Good question.

practically study the issue. if all the coowners entered into one agreement?

whether the property management is taken care commonly and shared among the coowners?

whether the property is having single identification number i.e.,,house number?

whether TDS of income tax is separatley deducted

whether separate payments are made

whether THE PROPERTY TAX is paid separately?

IS THERE AGREEMENT BETWEEN THE COOWNERS TO INDEPENDENTLY DEAL WITH THE PROPERTY?

as per my view, small scale exemption is available for person wise.

 

AI Summary

Service tax on rented immovable property: co owner treatment affects registration and exemption entitlement. Determination of service tax registration and liability for rented immovable property in multiple individual names depends on whether the co owners operate under a single tenancy agreement and pooled management or act independently. If co owners deal separately (distinct agreements, receipts, TDS and property tax), each must register and is eligible for small scale exemption on a person wise basis; if managed and let under a common agreement with pooled receipts and single identification, registration and liability should be consolidated under the contractual supplier.