Help for service tax on rent

Service Tax (Legacy) 614 views 5 replies

ashutosh

30 Points Posted on 22 March 2013

Dear Sir/Madam,

Our company is paying a rental of Rs. 6973/- per month to our landloard for commercial property taken at bhiwandi, maharashtra. Know the turnover of the landloard other business/service has crossed Rs. 10 lacs and have started paying ST, and he is demanding service tax on rent of Rs. 6973/-.

Please help whether i am liable to pay the ST, or is there any notification or rule where i can save the ST.

Regards

Ashutosh Agarwal

Replies (5)

CA Suryakant Dubey

931 Points Posted on 22 March 2013

Since the landlord has charged service tax on the bill,you are liable to pay service tax after deducting tds on rent amount(exclusive of service tax)

ashutosh

30 Points Posted on 22 March 2013

Originally posted by : Suryakant Dubey
	Since the landlord has charged service tax on the bill,you are liable to pay service tax after deducting tds on rent amount(exclusive of service tax)

Dubeyji,

Our total rent for the year is just Rs. 83676/-, hence tds is not applicable, but he has asked to pay service tax without any bill. Hence, the confusion, He says to give bill once we pay ST.

Therefore I am in a big confusion.

Regards

Ashutosh

CA Suryakant Dubey

931 Points Posted on 22 March 2013

landlord has to charge service tax @ 12.36% in the bill to claim or demand service tax amount from your company

Guest

if he has not charged service tax on the bill then the same is not required to be paid...

Ankit Agarwalla

281 Points Posted on 25 March 2013

You are only liable to reimburse tax to the Landlord only if he provides a valid service tax invoice meeting the parlance of Sec 4 A clearly specifying the base value & Service Tax seperately.

Regards