Renting of immovable properties

Save Share

This query is : Resolved

Sasidhar Aruljothi (Querist)

28 May 2015 Guys,
The assessee is collecting say 1000 as rent and st of 123.6. He has paid property tax of say 100. So actual st liability is (1000-100)*12.36% which comes to 111.24. If the client chosses to pay as per the assessable value, he would have collected excess ST. So the best way woud be to pay of the whole service tax collected right?

As per Notification No. 29/2012, Assessable value for renting of immovable properties is Gross value LESS property Tax paid (On proportionate basis.
If assessee pays excess service tax he can adjust it upto one year.

Kindly clarify.

Regards Sashi

Shreyas Sangoi

Shreyas Sangoi (Expert)

29 May 2015 You have rightly collected the entire Service tax. You will need to pay only the balance amount to Government i.e. after property tax deduction.

You are eligible for property tax deduction since you have paid the same from your pocket. But you have to charge the entire Service amount from the client.

The deduction of property tax is like your savings.

Sasidhar Aruljothi

Sasidhar Aruljothi (Querist)

19 January 2016 I am eligible for the Property tax deduction. If I collect 1000 as rent and ST @ 14% 140/-(1140). I pay Property tax of 100 say. I will have to pay to the govt only (900*14%)=126/-. That excess 14Rs will be in my hand only no. Wont I be guilty of collecting more than what I have paid?

Sasidhar Aruljothi

Sasidhar Aruljothi (Querist)