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Do I need to pay service tax on rental income


17-Feb-2023 (In Property Law)
i am HINDU having 5 storage commercial building absolutely on my single name where groundfloor is given on rent by me & i m getting RS.6,50,000/- P.A, rest 2 floors i have given to my son on rent at rate of Rs.1,50,000/- P.A & another 2 floors at rent of Rs.1,50,000/- to my daughter in law with the rights of they can sublease on rent. my rental income is Rs. 9,50,000/- hence i m not collecting rent service tax from above three tenant nor i m paying service tax.the corporation tax & income tax on rent is paid by me. my son & daughter in law has sublated(as per their lease rights)& each of them are getting 5.5 lakhs + 5.5 lakhs rent, my QUST is Does this 3 rent of Rs 6,50,000/-+5,50,000/-+ 5,50,000/- will add back to my rental income & do i have to pay service tax or my rent will be considered Rs. 9,50,000/- which actual i m getting will be considered, & i dont have to pay service tax.in above situation if i dont have to pay service tax i required letter from advocate.i ll pay for it.
Answers (2)

Answer #1
621 votes
Hi,As per above info. you need to pay service tax and income tax. As Per Section 6 of the ST Act 1994, service tax needs to be paid for all rented commercial immovable properties which is 15% of the total rent received. I did not understand about which kind of letter you need from a lawyer, if service tax not required be paid. In case of, Income tax the taxable income is around Rs.6,65,000/-, if you do not have any savings or do not need to pay any interest on the property. we may need an discussion on this.
Answer #2
812 votes
The current service tax rate is 15% , and the govt keeps changing this rate in the budget announced every year. Service Tax is liable to be paid on any service rendered by any person in India if the revenue of the person providing the service is more than Rs. 10 Lakh p.a. This service tax is also levied on bloggers and freelancers as they also provide a form of Service.

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