Registration of service tax - exemption limit

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Renting of immovable property by Co-owners There is a single property let out for commercial purpose. Out of 4 Co-owners 2 are getting annual Rent Rs. 9 Lacs and other 2 are getting annual rent of Rs. 6 Lacs. Now does all the 4 co-owners need to get registered and pay service tax or only those crossing the threshold limit need to get registered and pay service tax. Regards

AI Summary

Service Tax Registration: Co-owners Must Register Individually if Income Exceeds Threshold; Issue Separate Bills for Rent Shares. A query was raised regarding the registration and payment of service tax by co-owners of a commercially rented property. Two co-owners earn an annual rent of Rs. 9 Lakhs each, while the other two earn Rs. 6 Lakhs each. The response clarified that service tax applicability is determined per service provider, not per property. Therefore, only the co-owners whose service income exceeds the threshold limit need to register and pay service tax. They should issue separate bills for their share of rent. Additionally, deductions like property tax and CENVAT on input services should be claimed proportionately.