Renting of immovable property
This query is : Resolved
Mukesh Kumar
(Querist)
18 August 2013
Hi
During the period from October to March 2013, we have received rent of Rs. 12,00,000/- ( plus 12.36% Service Tax on Rs. 12,00,000).
In the month of March We have paid Property Tax of Rs. 1,20,000/- for the month of October to March, 2013 ( Rs. 20,000 P.M. )
Now as per Notification 29/2012, we have to pay Service Tax on Rs. 10,80,000 ( 12,00,000- Rs. 1,20,000 )i.e., 10,80,000/- * 12.36%= Rs. 1,33,488/-
Bur we have collected Rs. 1,48,320/- from service receiver.
So, there is benefit of Rs. 14,832/- ( 1,48,320/- minus Rs. 1,33,488/-)
Now my question is that whether it is our benefit or we have to pay Rs. 14,832/- to Service Receiver
thanks
During the period from October to March 2013, we have received rent of Rs. 12,00,000/- ( plus 12.36% Service Tax on Rs. 12,00,000).
In the month of March We have paid Property Tax of Rs. 1,20,000/- for the month of October to March, 2013 ( Rs. 20,000 P.M. )
Now as per Notification 29/2012, we have to pay Service Tax on Rs. 10,80,000 ( 12,00,000- Rs. 1,20,000 )i.e., 10,80,000/- * 12.36%= Rs. 1,33,488/-
Bur we have collected Rs. 1,48,320/- from service receiver.
So, there is benefit of Rs. 14,832/- ( 1,48,320/- minus Rs. 1,33,488/-)
Now my question is that whether it is our benefit or we have to pay Rs. 14,832/- to Service Receiver
thanks
CA Suresh Jain
(Expert)
18 August 2013
Since you have already collected the tax on the value of service without adjusting property tax paid/payable by you, you need to pay the amount collected by you. For future, you charges the service tax from your tenant on the amount of monthly rent minus property tax.
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
Manickam.N
(Expert)
18 August 2013
Whatever the amount collected as service tax is payable to government account only.
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