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 8 years ago in Service Tax
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.
since the ffloor & s.floor are used for residential purpose like Paying guest shouldnt that be excluded from Service tax and then if we take into account rent of Gf & mezzanine which will be used for commercial rent of which woudnt exceed 10 lakhs pa then is it neccosary to pay service tax?
Asked 8 years ago
Dear Sir,
It is necessary to pay service tax even if you are renting out property for residential purposes.
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