Shop/commercial space owner not paid service tax
This query is : Resolved
jagadeeswaran
(Querist)
05 April 2016
Dear sirs,
partnership firm has taken commercial godown for rent. in the rent agreement it was mentioned that the lessee/tenant will bear the service tax.
it is the practice in the firm that the owner/lessor will pay the service tax and produce the challan and on submission of the challan, the firm will reimburse the said service tax amount to the lessor.
the owner/lessor has not produced the challan and taken the reimbursement. the firm was under the assumption that the lessor is within the ceiling limiit and hence he is not claiming the service tax.
after a lapse of five years from the inception of lease, when the lessee after vacating the godown and sought for refund of deposit amount, the owner/lessor asking to produce the service tax challans.
in fact, as per the statute, the service provider i..e the lessor/owner has to pay the service tax to the authorities.
in the above circumstances, i seek the advice of experts, what is the legal liability of the tenant/lessee.
Regards
L.JAGADEESWARAN
partnership firm has taken commercial godown for rent. in the rent agreement it was mentioned that the lessee/tenant will bear the service tax.
it is the practice in the firm that the owner/lessor will pay the service tax and produce the challan and on submission of the challan, the firm will reimburse the said service tax amount to the lessor.
the owner/lessor has not produced the challan and taken the reimbursement. the firm was under the assumption that the lessor is within the ceiling limiit and hence he is not claiming the service tax.
after a lapse of five years from the inception of lease, when the lessee after vacating the godown and sought for refund of deposit amount, the owner/lessor asking to produce the service tax challans.
in fact, as per the statute, the service provider i..e the lessor/owner has to pay the service tax to the authorities.
in the above circumstances, i seek the advice of experts, what is the legal liability of the tenant/lessee.
Regards
L.JAGADEESWARAN
CA R SEETHARAMAN
(Expert)
05 April 2016
Legal liability to pay service tax to service tax authorities is on the lessor/owner. The liability of tenant/lessee is to pay service tax only when service tax is claimed by owner.
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