Service tax on rent

This query is : Resolved

Kunal Mittal (Querist)
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26 November 2016 I PAY SERVICE TAX ON RENT PAID AND RECEIVE SERVICE TAX ON RENT RECEIVED TO BE DEPOSITED TO GOVT.
CAN THESE BOTH BE SET OFF WITH EACH OTHER OR DO I HAVE TO PAY BOTH TO GOVT. ?

CA. Vinodh Kothari

CA. Vinodh Kothari (Expert)
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26 November 2016 Yes you can adjust input of service tax paid on rent against service tax payable on rent received VK

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Sandeep Dharar

Sandeep Dharar (Expert)
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29 November 2016 No no, u can claim ITC on service tax on rent paid by u. Example:-

U paid rent of Rs. Say 10,000/-, and ST paid by u is 1500, total amount 11,500/- (1450 is ur Cenvat Credit u can claim with output Service Tax)

U collect Rent Rs. 1,00,000/-, and ST collected is 15000/- (15,000,is ur output tax to be paid to dept.).

So the final amount u r going to pay to Govt. Account is (15,000 - 1450 = 13550/-)

Note: Here one thing keep in mind that U can't claim credit of Swachh Bharat Cess with ur ST liability, thats y the amount is 1450. ST- 1400, SBC- 50 and KKC- 50.

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Kunal Mittal

Kunal Mittal (Querist)
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30 November 2016 Dear Sandeep Sir. Thanks very much for your guidance.

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