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Q. > Please Help: service tax on renting of immovable property owned jointly
In case an immovable property is owned jointly by three owners and the property is rented for commercial purpose to a concern and all the three co-owners receives the rent equally and seperatly as per the contract entered between the co-owneres and the tenent, whether all three co-owners are eligible to avail the exemption Rs. 10 lacs of small service provider under n.no 6/2005. please provide legal provison in this regard and if possible please provide any judgement if any delivered in this regard.
CA Sansaar

Comments
Yogesh
11-Sep-2011 , 06:27:22 pmApplicability of service tax depends upon the status of receiver of rent. If an individual person receives it in his personal capacity as co-owner then each of the co-owner is eligible to avail exemption of Rs. 10 lacs.
Chetan Agrawal
11-Sep-2011 , 11:27:19 pmDear Yogesh, thanks for your resopnse. I to is of the same view. But what i required was any legal provision/judgement in support of this view. Bacause what happen actually in this case was that AO is treating the three owners as an AOP ( and thus a single service provider) and allows exemption only of Rs.10 lacs and not separetly to each individual.