Service tax on penalty incurred due to late payment of rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2012 Hello,

Could you please clarify if the service tax is payable on a penalty that has been incurred by a company, if the penalty has been incurred for late payment of rent.

CA NIKHIL OZA

CA NIKHIL OZA (Expert)
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21 April 2012 As service tax is to be computed on gross amount charged which may be collected b4,during or after the completion of service...as such, such amount is to be grossed up for computation of s.tax..