Service tax on renting of immovable property

I have a query in regards to renting of Immovable Property. My company has provided a land on lease to a company. The payment of lease were received annually in september every year. And as per agreement, my company issues a single bill for the lease every year. now during service tax audit by department. they are demanding interest for not paying service tax on monthly basis. they consider it in continious supply of service. Department considers it as a default. is it necessary to issue monthly invoice? is it valid?
Replies (5)

When the service tax for the rent paid? If in the beginning of the year, only returns are to be revised.

service tax is being paid in september every year.

The earliest of the 3 events for normal transactions: receipt of payment, billing or completion of service. As no billing or reciept and as per contract it is September. Not required to be paid earlier.

It could be said tobe constinuos supply under which also the contract specifying that payment to be made in september would apply unles spayment recived earlier or billed earlier.

Since the contract specifies that the payment of the rent amount is to be made in September every year also the invoice is being issued in september and also payment is being received in september then the point of taxation will be september (5th of Oct.) in the instant case.

Thank you all for your valuable comments on the point.

Then why the department is asking for interest on late payment of service tax and issue of monthly bills for rent?

can argument on the same be made with department?

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