rent on property

This query is : Resolved

RAM SAINI (Querist)
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19 June 2009 we are having a plat on rent and the landlord is still charging the service tax on the rent amont on his bill

shud we pay the service tax or not ???????

pls advise

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 June 2009 Delhi high court gave a verdict that levying service tax on rent is unconstitutional. But then,unless this decision is accepted by revenue, the matter is not free from doubt.

Parveen Bansal

Parveen Bansal (Expert)
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19 June 2009 It is a likely situation that landlord will not agree to not to charge service tax.

You can tell landlord that service tax is your liability to collect and deposit to department.

You may discuss to reserve your right to recover service tax irrespective of refund from service tax department.

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