applicability of service tax
This query is : Resolved
HARISH KAPOOR
(Querist)
15 June 2009
(1)In view of the Delhi High Court Ruling on non charging of Service Tax on Rent, what should a property Owner do . should he charge Service Tax from the Tenant or not . Or he should take a undertaking from Tenant.
(2) Reimbursement of Expenses will attract service Tax or not , please advice.
(2) Reimbursement of Expenses will attract service Tax or not , please advice.
Ram Avtar Singh
(Expert)
15 June 2009
Now Its Suspence. we have not charged waiting for court decision.
no service tax on reimbursment.
no service tax on reimbursment.
CA Nitin Wadhwani
(Expert)
15 June 2009
1)(i)If the tenant is getting the cenvat credit of the service tax paid on the rent, then there is no issue for him.
(ii)If he is not getting the credit, then decision is with the parties. The charge is mandatory since it is only a judgement and not law. If the tenant agrees to re-imburse the amount if it is proved contrary to the judgement, then you should not charge, otherwise for your safety you must continue to charge.
2)Reimbursement of expenses attracts Service tax unless they incurred as a pure agent of Service Receiver.
(ii)If he is not getting the credit, then decision is with the parties. The charge is mandatory since it is only a judgement and not law. If the tenant agrees to re-imburse the amount if it is proved contrary to the judgement, then you should not charge, otherwise for your safety you must continue to charge.
2)Reimbursement of expenses attracts Service tax unless they incurred as a pure agent of Service Receiver.
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