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Service Tax component is chargeble to tax or not.

This query is : Resolved 

29 September 2010 Can anybody help me on the issue of:-

Whether service tax component collected from tenant on rental income is chargeble to income tax or not.

Prima Facie relying on the circular no 4/2008, we can say that the service tax paid by the tenant doesnt partake the nature of income of the landlord. The landlord only acts as a collecting agency for Government for collection of service tax.

02 October 2010 Your understanding is correct, same not treated as income. However the income tax circular is applicable only in respect of rental income and not to others like consultancy/ contractors etc.


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