Do i have to pay service tax?

I am renting my building to a
Warehouse-G.f
Office- Mezanine floor
First floor-PG for working Men
Second floor-PG for Working Men

The Annual rent receivable is around Rs19,80,000 out of which 30% will be paid as commision to my property management company every month

Also should i collect rent every month in my account & then pass 30% to the company or should i let them collect the rent & they can pass the 70 % rent to me?
Asked 1 year ago in Service Tax from New Delhi, Delhi
Dear  Sir,

Yes, you have to pay service tax. 

Further, Please let us know what is the role of property management company? Why do you pay 30% of the rent to that company.

Please feel free to call/revert in case of any doubts

Thanks and Regards
Abhishek Dugar
CA, CS, B.com


Abhishek Dugar
CA, Mumbai
2336 Answers
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Dear Sir,

Yes Service Tax shall be charged on the entire rental value without deducting the commission paid to the Company.

Trust this clarifies your query. 

Feel free to call back/ get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP. 
Rohit R Sharma
CA, Mumbai
1965 Answers
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Dear Sir,

It is necessary to pay service tax even if you are renting out property for residential purposes.
Abhishek Dugar
CA, Mumbai
2336 Answers
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  Talk to Abhishek Dugar

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