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This query is : Resolved

CA Chetan Singhal (Querist)

31 May 2014 sir I am taking rent of Rs.1,00,000/- p.m on which service tax liability is arise but I want that company who is giving me rent, paid service tax on behalf of me I dont get want to registered in service tax, my company(tenant) is ready to pay service tax on behalf of me of which they will take cenvat credit whether it is correct practice or what should I do please suggest me

thanks

CA DEEPAK S K

CA DEEPAK S K (Expert)

01 June 2014 It is not a right practise Mr Chetan, as the statute is casting a responsibility on you to levy, collect and discharge the tax hence you cannot shift the burden on to some other person. Though your intention are not to evade payment of tax the department will collect from you the tax, interest and penalty irrespective of the fact that your tenant has paid that tax.

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