service tax

Save Share

This query is : Resolved

Nagaraj SV (Querist)

25 March 2008 can both service tax and income tax be levied on renting of immovable properties ... this issue was under contraversy ,,, what is the clarification

Rakesh

Rakesh (Expert)

25 March 2008 Yes TDS deducted by the payer on behalf of receiver and Service Tax paid by the receiver.

Vikas Garg

Vikas Garg (Expert)

25 March 2008 yes

yogesh

yogesh (Expert)

26 March 2008 yes both Income tax and service tax both can be charged on rented property. It is not a double taxation, because one is charged on payer and other is charged to payee. one is direct tax and other one is indirect tax.

Arbind Aggarwal

Arbind Aggarwal (Expert)

01 April 2008 Service tax is an indirect tax and income tax is a direct tax, indirect taxes are levied on the transaction and direct taxes are levied on the income earned by that transaction.

Service tax is leviable on the transaction value, means the gross amt. of rent-local taxes paid.

While income tax will be levied as per income tax act under house property.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now