Adjustment of house tax against rental income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 March 2014 Question- A person receive Rental income @ Rs. 1,00,000 each month. He deposited service tax till December 13 on Rs, 1,00,000/- each month @12.36 %.He pay house Tax of Rs. 1,20,000/- in Jan 14 for the period of April 13 to March 14.
Whether he claim of whole House tax against Rental income of Jan 14 to March 14 or how he can take claim?

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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19 March 2014 Hi,
As per the notification 29/2012 ST you are eligible to reduce the Property tax paid from the taxable rental income proportionately. i.e total Property tax paid /4 the same amount should have claimed in each quarter, hence now you have paid excess Service tax up to Decemeber-2013.

The same excess amount can be adjusted in the next quarter i.e Jan 14 to march-14 without any limit by way of claiming full property tax paid for the period april - 132 to march-14

Note:

Interest, penalty paid on account of delayed payment of property tax or any other reasons shall not be treated as property tax for the purposes of deduction

Querist : Anonymous

Querist : Anonymous (Querist)

20 March 2014 Thanks for your advice.

Please also clarify that the person should follow Rule 6(4C) of Service Tax Rules 1994 & intimate the adjustment to superintendent or just take benefit of whole house tax in 4th Qtr (Jan 14 to Mar 14).

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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20 March 2014 Hi,
Yes, you should intimate to your jurisdiction superintendent within 15 days from the date of adjustment.

The adjustment date is the date when you have paid the service tax for Jan to march -14.

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