SSI exemption of Service Tax to be granted to all co-owners of property

Some­times there are two or more co-own­ers of a prop­er­ty and giv­en on rent to a sin­gle per­son. Now dis­pute aris­es as to whether SSI lim­it is to be applied to the amount col­lec­tive­ly received by indi­vid­ual co-owner(s) or indi­vid­u­al­ly to the each of the co-owner(s).

Hon’ble CESTAT in the mat­ter of PANKAJBHAI CHAMPAKLAL PAREKH Vs. COMMR. OF S.T. AHEMDABAD, 2013(31) S.T.R. 325 (Tri-Ahmd.), has held that in case a premis­es joint­ly owned by two or more per­son (i.e. two or more co-own­ers) is giv­en on rent to a sin­gle per­son and cheques for rent are received indi­vid­u­al­ly by all the co-owner(s), then in such case all the co-own­ers be con­sid­ered as provider of Rent­ing of immov­able prop­er­ty ser­vice indi­vid­u­al­ly. This being so, thresh­old lim­it for cal­cu­lat­ing SSI exemp­tion will also applic­a­ble to indi­vid­ual co-own­er rather than col­lec­tive­ly to all the co-owner(s).

There by just Alike TDS on Rent where the share of each co-own­er in the prop­er­ty is def­i­nite and ascer­tain­able, the lim­it of Rs. 180,000 will be applic­a­ble to each co-own­er separately.

Leave a Reply

Your email address will not be published. Required fields are marked *