#Threshold Exemption

CESTAT Chennai rules co-owners of commercial property cannot be treated as an 'association of persons' for service tax on rental income, setting aside demands and upholding individual assessment. The ruling clarifies that co-ownership does not trigger collective liability under service tax laws, benefiting small property owners.

CESTAT Chennai clarifies that co-owners renting property individually, without joint management or shared income pooling, cannot be taxed as an 'Association of Persons' under service tax laws. This ruling protects individual co-owners from collective tax liability, reinforcing the need for volitional joint enterprise to trigger AOP classification.