22 December 2014
Hi As per the Notification No. 29/2012 Service Tax. Service tax is calculated after subtracting Property Tax from Rent received. But the Property tax is also paid 1/2 yrly, that is after raising the ST bill. eg. Property tax for oct 13 to March14 is paid in may 2014. How will i deduct the said tax in the period oct13 to March14 for which the ST bills have been already issued??? thnx in advance
22 December 2014
As per notification 29/2012 dated 20th June, 2012, "wherever the period for which property tax paid is different from the period for which service tax is paid or payable, property tax proportionate to the period for which service tax is paid or payable shall be calculated and the amount so calculated shall be excluded from the gross amount charged for renting of the immovable property for the said period, for the purposes of levy of service tax"
Therefore, you can claim exemption services tax on Renting of immovable property upto municipal taxes on accrual basis
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