Propriety Tax

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Prakash (Querist)

20 November 2008 What is the difference between Propriety tax & Municipal Tax ? can we deduct Propriety tax when service tax on rent payable ?

Ravikumar.G

Ravikumar.G (Expert)

20 November 2008 Nothing difference. It depends upon the Jurisdiction, whether covered by corporation, municipality or local panchayat etc.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

20 November 2008 Property tax can be deducted from rent received for the purpose of service tax calculations. Pl refer notification no 24/2007 dt. 22/05/2007.

Prakash

Prakash (Querist)

20 November 2008 Dear Sir,
same thing sir, can we deduct Municipal Tax for the purpose of service tax calculations.

Ravikumar.G

Ravikumar.G (Expert)

20 November 2008 You can.Municipal tax proportionate to the period for which service tax is paid shall be calculated.

Ravikumar.G

Ravikumar.G (Expert)

20 November 2008 If any amount such as interest, penalty is paid to the local authority by the service tax provider on delayed payment or for any other reason such payments shall not be treated as property tax for the purpose of deduction from the gross amount charged.

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