TaxTMI 
TaxTMI 
2018 (10) TMI 400
X X X X Extracts X X X X
X X X X Extracts X X X X
....income and TDS was deducted separately for each co-owner for income tax purposes. Department was of the view that since co-owners have an undivided share in the property, all the co-owners have to be treated as an association of person and the rental income has to be combined together. When the rental income was combined in such manner, the amount exceeded the threshold limit and the appellants were therefore liable to pay service tax. Show cause notice was issued to the appellants proposing to demand service tax along with interest and also for imposing penalties. After due process of law, the original authority confirmed the demand of service tax of Rs. 10,06,867/- on the appellants along with interest under renting of immovable proper....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mmissioner of Central Excise, Jalandhar - 201 (5) TMI 895 - CESTAT, Chandigarh 4. The ld. AR Shri K. Veerabhadra Reddy supported the findings in the impugned order. 5. Heard both sides. 6. The ld. consultant for the appellant has given the break-up of the share of each co-owners in the value of rent alleged n the show cause notice. It would show that the same would fall below the threshold exemption under SSI notification during the relevant period. The demand has been raised on all the coowners to treat them as association of person and levy service tax on the amount of rent received by them. When the coowners are treated individually, the amounts undoubtedly fall below the threshold exemption. The Tribunal in the case of Sarojben....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nts inasmuch as „association of persons‟ has been considered as a separate legal entity under the Income-tax Act for assessment and provided separate PAN number different from the PAN number possessed by individual co-owners; who joined together to form an „association of persons‟. In the present case, the show cause notices were issued in many cases to one person among the Joint owners and in other cases to all the persons who had jointly owned the immovable property provided on rent. Needless to mention, the Service Tax Registration of individual assessees for collection of Service Tax is PAN based, hence, collection of Service Tax from one of the co-owners, against his individual Registration for the total rent re....