Service Tax not leviable for Rental Agreements in Name of Individual Partners for Jointly Owned Property: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled that service tax is not leviable on rental agreements in the name of individual partners for jointly owned property. The case involved Sidhi Vinayak Associates, a partnership firm providing “Renting of Immovable Property Services.” The tribunal observed that since the rental agreements were in the names of individual partners, the property held jointly by them could not be considered as a service to oneself. This decision clarifies that service tax cannot be imposed on rental income from properties jointly owned by partners when the agreements are in their individual names, ensuring that such transactions are not subject to service tax under the Finance Act, 1994.