25 March 2008
can both service tax and income tax be levied on renting of immovable properties ... this issue was under contraversy ,,, what is the clarification
26 March 2008
yes both Income tax and service tax both can be charged on rented property. It is not a double taxation, because one is charged on payer and other is charged to payee. one is direct tax and other one is indirect tax.
01 April 2008
Service tax is an indirect tax and income tax is a direct tax, indirect taxes are levied on the transaction and direct taxes are levied on the income earned by that transaction.
Service tax is leviable on the transaction value, means the gross amt. of rent-local taxes paid.
While income tax will be levied as per income tax act under house property.
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