10l is exemption

This query is : Resolved

SATYA VARA PRASAD TENNETI (Querist)
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06 March 2014 Hello,

Greetings to you.
In my company We are paying rent to the land lord from FY2010-11 to till now.
We paid 10L first year and second year also we paid 10L. Please let me know are we liable to pay services tax from the second year. As per my knowledge If we cross the 10L every year only we liable to pay service tax. Please I want to know are we liable or not?

Thank you in advance.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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06 March 2014 when you are a service receiver, it is not that you are liable to pay service tax. the landlord is supposed to charge service tax.

only in case of reverse charge mechanism, you need to look at the service tax liability.