DO WE HAVE TO PAY SERVICE TAX ON RENTAL OF PROPERTY?



we are a deemed limited company We have purchased a flat in Hebbal and have furnished it with furniture, fixtures and fittings. We have given it on a rent for a another limited company for 11 months agreement. We get a rental income of Rs 35000 per month. do we have to pay service tax on rental
of fully furnished flat to the government. We have not registered with service tax. Please clarify.

DO WE HAVE TO PAY SERVICE TAX ON RENTAL OF PROPERTY?
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4 Replies to “DO WE HAVE TO PAY SERVICE TAX ON RENTAL OF PROPERTY?”



  1. As of now, there is no service tax on rent paid. But there is a proposal to levy services tax on rentals in excess of Rs. 1 lakh per month.


  2. A good rental property owner knows every part of his business from financial operations, to tenant relations down to the available utilities and supplies. Similar to how a clock functions, a good rental property owner must have all his parts work together in order to meet the ultimate goal which is to earn an income and profit prosperously. Often times, landlords lose a great sum of money by not taking advantage of the tax deductions available for them. Here’s the top 5 rental property tax deductions owners need to be aware of:

    – Interest: Tax deduction only applies when the purpose for these interests is related to the rental property.
    – Repairs
    – Rental Property Employees: Wages and salaries from employees and independent contractors can be used as rental property tax deductions for the owner.
    – Tax from Local Travels
    – Legal and Professional Services





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