Service tax on renting of immovable service

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This query is : Resolved

CA ASHWIN CHOPRA (Querist)

21 November 2014 I wanted you guidance in following matters. All questions are regarding an assesee whose business is renting of immovable property.
1. If a part of the security deposit of the tenant is forfeited or the damages in property used by him and such amount is used for repairs of the property for the damages caused due to use by the tenant.Then is such amount chargeable to service tax?
2. If security amount is adjusted against rent at the end while then what would be the point of taxation in service tax.
3. If any creditors are written off then is there any service tax liability in this regard.
Please provide your opinion in this regard.

Amol S Joglekar

Amol S Joglekar (Expert)

21 November 2014 01. No. In this case no service is provided
02. Adjusted security deposit is definitely charged to service tax because it is RENT.
03. Writing back of creditors per se is NOT chargeable to service tax (Hope this creditor writing back is NOT a regular and frequent feature of the business)

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