Arrears of property tax paid is allowed for calculation of

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ramanamma (Querist)
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18 May 2013 Friends please tel me urgent

is payment of property tax paid is allowed for calculation of service tax

example

property tax due for 4th quarter 2010-11 is paid in next year 2011-12 1st quarter. in that

2011-12 for calculation of service tax is allowed ??? arrears of property tax paid in 1st quarter .

please reply
urgent friends.

Suresh Mittal

Suresh Mittal (Expert)
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18 May 2013 No. Please refer NN 29/2012. Payment of property tax for the relevant period only be deductible.

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RENGARAJ R.K

RENGARAJ R.K (Expert)
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18 May 2013 Is it for adjusting the property tax value from renting on immovable property?, as the query is not clear.

Any property tax paid can be adjusted from rental income for remitting the service tax. The Act allows it but the term "arrear" is not mentioned.
Notn: 29/2012 dt 20.06.12 Example quoted in the Notn:

Property tax paid for April to September = Rs. 12,000/-
Rent received for April = Rs. 1, 00,000/-
Service tax payable for April = Rs. 98,000/- (1, 00,000 -12,000/6) * applicable rate of service tax

2. This notification shall come into force on the 1st day of July, 2012.

ramanamma

ramanamma (Querist)
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18 May 2013 Rengaraj sir

in that case property tax of Rs. 24000 (Apr-March)but only Rs 8000 only paid in that year remaining balance paid in next year in that case how service tax we can calculate

is Rs. 24000 allowed for that year
or

only Rs. 8000 is allowed for deduction of property tax.
please suggest

RENGARAJ R.K

RENGARAJ R.K (Expert)
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27 July 2013 Whatever paid during the year is eligible for deduction. Rs.8000 can be calculated for next year.

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