TaxTMI 
TaxTMI 
renting of co-owned property
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....enting of co-owned property<br> Query (Issue) Started By: - satbir singh wahi Dated:- 6-3-2016 Last Reply Date:- 8-3-2016 Service Tax<br>Got 6 Replies<br>Service Tax<br>Property is co-owned with definite share and it is let out , rent is received individually with individual PAN and TDS. Whether Service tax on Individuals or Joint coownership. Department quoting Supreme court in the case of Rama....
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....n Lal Bhai patel Vs. State of Gujarat 2008 (2) TMI 859 - Supreme Court Of India in civil appeal no. 4420 of 2004, in which to a question as to whether co-owners together are a person or not , the honourable SC in para 21 of the judgement has specifically held that '' if the co-owners proceed further and enter into an arrangement or agreement to have a joint enterprise or venture to produce....
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.... a common result for their benefit , then the co-owners may answer the definition of person'' Pl guide . Reply By Ganeshan Kalyani: The Reply: Each invidiual owner receiving rent income is eligible to avail the basic threshold limit of ₹ 10 Lacs, though the property from which the income is generated is same. Thanks. Reply By CS SANJAY MALHOTRA: The Reply: Dear Mr. Wahi, Would....
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.... further add to Mr. Ganeshan views that threshold exemption of ₹ 10 Lacs would apply to each Individual. No Doubt DGST has clarified vide their letter F.No. V/DGST/VIII-RIP3/139/2011-12/1202 dated 07.03.2013 vide Para 3.2 & Para 5 that "the shelter of threshold exemption can be taken only if the immoveable property is covered by a single title deed in favour of a single individual"....
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....;, but it can be taken as statutory guideline as the DGST clarifications can't overrule the Notifications & Circular..... Do refer to the Citation in case as below, which would enable you to strengthen your view point across Tax officials. Commissioner of Central Excise, Nasik versus Deoram Vishrambhai Patel - 2015 (9) TMI 790 - CESTAT MUMBAI Reply By satbir singh wahi: The Reply: THks Mal....
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....hotra Ji But how we reply to Dept View " Department quoting Supreme court in the case of Raman Lal Bhai patel Vs. State of Gujarat 2008 (2) TMI 859 - Supreme Court Of India in civil appeal no. 4420 of 2004, in which to a question as to whether co-owners together are a person or not , the honourable SC in para 21 of the judgement has specifically held that '' if the co-owners proceed....
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.... further and enter into an arrangement or agreement to have a joint enterprise or venture to produce a common result for their benefit , then the co-owners may answer the definition of person'' Reply By CS SANJAY MALHOTRA: The Reply: Dear Mr. Wahi, SC Judgement is not relevant in the present case as the facts are different. Coparceners depending upon the case to case basis can sign off ....
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....Agreement as "Association of Persons" which is the case in the SC decision, but herein the Property belongs to various persons and they can sell off their share at any point of time. Hence the service can't be regarded as rendered in the capacity of "Association of Persons". Citation quoted is sufficient as of now as the Notifications of Service Tax does not clearly specif....
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....ies the Co-parceners treatment as "Association of Persons" for the payment orf Service Tax. Hope above addresses your concern. Reply By KASTURI SETHI: The Reply: I support the views of Sh.Ganeshan Kalyani and Sh.C.S.Sanjay Malhotra, Sirs. Reply By satbir singh wahi: The Reply: Thks to all for your timely guidance.<br> Discussion Forum - Knowledge Sharing ....