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Anil pattnaik (Proprietor)     10 October 2010

service tax threshold in joint holding

I and my wife jointly receive commercial rent Rs.16 lacs annually. Will we have to pay service tax or it will be exempted as threshold limit is 10 lacs per person?



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 3 Replies

R.Ramachandran (Advocate)     10 October 2010

Dear Mr. Patnaik,

Please clarify the following points before one could attempt an answer to your query.

(1) Whether the Agreement was entered into both by the wife and husband or only by the husband?

(2) Whether the agreement stipulates that 50% of the rent will be paid to wife and 50% to husband?

(3) Whether the cheques are being issued by the Company separately in favour of wife and husband?

Anil pattnaik (Proprietor)     10 October 2010

Agreement has been entered both by husband and wife. But not mentioned that 50% each to be made. Cheques are issued jointly .

R.Ramachandran (Advocate)     10 October 2010

According to my view, since the entire amount is being received by you jointly, you may have to pay the service tax, since the threshold limit would be exceeded.


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