Exemption of property tax paid by tenant

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 April 2016 Our company has acquired a property on rent on which it paid service tax on the same. Also, the company pays the property tax on the rental property even. Right now we have come to know that we can claim exemption of property tax paid as per notification no. 29/2012 dated 20.6.12. During 2015-16 during May 15 we have paid property tax of Rs.78533 and during the same year we have paid rental of Rs. 3012000. So now since we have already paid tax and didn't claim exemption of notification no. 29/2012, as per Rule 6(4C) of Service tax Rules, 1994 we can claim exemption within 1 year from date of payment and intimate the same to Superintendent. Pls confirm whether we can claim the same from Rental Payment of April 16. If yes then how we should go about this. Please guide. And from current year whatever property tax paid by us, we need to intimate to the landlord so that he shall deduct this and charge less service tax on rental amount?

Please guide in this matter.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 April 2016 If the property tax paid by land lord only can be deducted for payment of service tax. If you pay the property tax then it will be treated part of rent and deduction will have no effect.

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