TaxTMI 
TaxTMI 
Service tax on immovable property rented for the purpose of lodging.
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....ervice tax on immovable property rented for the purpose of lodging.<br> Query (Issue) Started By: - Rakshith Bhaskar Dated:- 16-12-2017 Last Reply Date:- 17-12-2017 Service Tax<br>Got 3 Replies<br>Service Tax<br>Dear Sir We are a partnership firm and in position of a commercial building which we have taken on management and a lump sum lease amount where we don't pay any rents to the owners of the....
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.... property and we have let out a portion of the building for the purpose of Lodging / Hotel ( Only accommodation) to a tenant in the capacity of Property managers representing through a partnership firm. We are 3 partners who divide the rent in the ratio of 50:25:25. We have rented the property for last 9 years starting with and annual rent of Rs. 14,40,000/- per Annum and after all the escalation ....
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....now the rent is ₹ 18,90,000/- per annum. * Is the immovable property let out for the purpose of and lodging by a partnership firm liable for service tax? Is it exempted? * our tenant charges rent not more than 1000 rs. per day * As Co owners of the partnership firm, not the property, we have received rents and declared that each co owner of the firm gets less than Rs. 10 lakhs as rent....
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.... when dived by 3 partners but the firm is collecting on behalf. How is this treated now? kindly request you to help me with this regards rakshith Reply By KASTURI SETHI: The Reply: Whether rent deed is one or separate for each partner of the firm ? Reply By Rakshith Bhaskar: The Reply: Dear Sir The Rent deeds are just one for all. The rent is made in between our tenants firm and our Partne....
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....rship firm. And the partnership is collecting the rent. Kindly assist. Thank you Reply By KASTURI SETHI: The Reply: In my view you are entitled to individual exemption of ten lakhs per year. Secondly, one judgement of the Tribunal ( you must be aware) has held that rent deed should be separate for each partner. Cheque should be separate. Bank account should be separate. This judgement has be....
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....en accepted by the department.<br> Discussion Forum - Knowledge Sharing ....