Service Tax on Entertainment Provider

This query is : Resolved

AJAY (Querist)
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12 November 2008 Hello to my All Friends !

I m PCC student,
I have one query abt Service Tax on Entertainment Providing Company.

I have seen one case where i m going to discuss !

Here is one Owner who has given his theter to one Entertainment Com. Like Adlabs, Cinemax etc..

He get rent every month but not Service Tax.
He is issuing bill with service tax as per Lease Deed.

He is not receiving Service Tax although he is paying it every month.

After some time that Ent.Co. gave notice
to leasor that they are entertainment com. and their case is running in the Court,,

Now, is it coumplasry for Lessor to pay Service Tax ?
and if he pay, will he recover that service tax from Ser. Dept. if the result of that case in Ent. Com. favor ?

Please suggest me what should be lessor has to do in this case he has to pay or not pay or how to pay?

Thanks

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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12 November 2008 1)The liability of paying service tax to the government is on the service provider (in this case lesor)who is permitted to charge it to the receiver of (in this case rental) service. The receiver (in this case lessee) will pay service tax portion of the bill raised by service provider only if the agreement provides for that. There is no way the lessor can receive the service tax from department if the lessee refuses to pay.

AJAY

AJAY (Querist)
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13 November 2008 He is Issuing Bill with Service Tax as per Deed?
than can he recover that service tax paid in Dept.?

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