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
2648 Answers
5.0 on 5.0
  Talk to Abhishek Dugar
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
2055 Answers
5.0 on 5.0
  Talk to Rohit R Sharma
Dear Sir,

It is necessary to pay service tax even if you are renting out property for residential purposes.
Abhishek Dugar
CA, Mumbai
2648 Answers
5.0 on 5.0
  Talk to Abhishek Dugar

Ask a Question

Get tax advice from top-rated chartered accountants. It's quick, easy, and anonymous!
Ask a question

Other Questions

Chartered Accountants

Lakshita Bhandari
CA, Mumbai
1242 Answers
5.0 on 5.0
Vivek Kumar Arora
CA, Delhi
515 Answers
5.0 on 5.0
Abhishek Dugar
CA, Mumbai
2648 Answers
5.0 on 5.0
Nikhil Khanna
CA, Mumbai
403 Answers
5.0 on 5.0
Rohit R Sharma
CA, Mumbai
2055 Answers
5.0 on 5.0
Brijendra Tripathi
CA, Gurgaon
83 Answers
5.0 on 5.0
Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
5.0 on 5.0
Vidya Jain
CA, Kolkata
499 Answers
4.0 on 5.0
Lalit Bansal
CA, Delhi
487 Answers
5.0 on 5.0
CA Sourabh Pahuja
CA, Delhi
45 Answers
5.0 on 5.0