Lavy of service tax


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Querist : Anonymous

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Querist : Anonymous (Querist)
03 August 2011 Dear Experts,

i have a querry.supppose Mr. A has letout his property to a company .
1. The monthly rent is Rs. 45000
2. Company had paid him 6 months advance rental adjustable in 24 equal monthly instalments
3. the rent was started from the month of may 2011
4. on july 5th 2011, Mr. A applied for registration under service tax and started charging service tax on Rent.
5. company is paying rent on 1st of each month and did the same in july also.

my querry is
1. do company need to pay service tax on advance amount too which was paid before A's registration.
2. do company liable to pay service tax for the month of july also.


03 August 2011 Sir, Annual rent does not exceed Rs.10 Lacs (45000*12 = 540,000) no need to collect service tax.

04 August 2011 I agree with the expert

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Querist : Anonymous

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Querist : Anonymous (Querist)
04 August 2011 But sir what will be in a case where Mr A is liable to charge service tax( he may have rented his other premises also)


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