Clarification about notification 29/2012

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2013 How to raise bill of rent of immovable property because as per notification service tax calculated on a value which is equivalent to the gross amount charged for renting of such immovable property less taxes on such property, namely property tax levied and collected by local bodies:
e.g.
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

As we have raised full bill without deducting property tax & collect service tax on gross amt. & paying service tax only on net of property tax...?
How to show in ST-3 return.

CA Suresh Jain

CA Suresh Jain (Expert)
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18 August 2013 Since you have already collected the tax on the value of service without adjusting property tax paid/payable by you, you need to pay the amount collected by you. For future, you charges the service tax from your tenant on the amount of monthly rent minus property tax.

disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case

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