Accounting treatment of service tax on rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2014 Our client has take godown on rent, on which service tax also has been collected by landlord.
My question is what would be the treatment of service tax portion in books.
1) whether to show as service tax on rent in profit and loss account
2) or to include it in rent. if i include the service tax in rent, whether tds deduct on service tax portion also or on only rent portion.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

06 August 2014 Show it as Service Tax in Profit & Loss Account if you are not taking input credit.

TDS should be deducted on Rent amount excluding Service Tax.

Rupesh Jain

Rupesh Jain (Expert)
Follow

06 August 2014 you cannot take the credit of service tax and you can deduct the tax on w/o service tax amount it is already notification issue by the deptt. u/s 194I

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now