Threating by service tax inspector

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2016 sir one of my friend had rent out his furnish bungalow to a company in year 2014 @ a deposit of 5000000 rs and monthly rent 350000 for next 5 years . he made an agreement on 1000 rs stamp paper . it was clearly mention in rent agreement that 5000000 rs are refundable when the tenure will be completed and if some dues/ maintenance charges occurs then it will be deducted from this amount . the company had to hand over the bungalow in same condition as it was handed over to them by my friend. the company people paid 8 months rent regularly by cheaque then they stop pay him any rent the flat was in company possession for next 10 month . any how by various source my friend took the possession of flat from company. when he check the flat he found various damages .after INVESTING 4800000 rs in flat he made all things in proper way . sir one of the company people had informed all this matter to a service tax officer now this service tax officer is threatening him . my friend had already paid all the service tax on the rent received by him . now the service tax inspector is asking him to pay the service tax on 10 month rent which he had not received .he said it doesn't matter whether you had received the rent or not but if you had raised the bill of rent then you have pay it other wise he will seized the house sir please tell us what to do ? sir we need help in this case .

Guest

Guest (Expert)

05 January 2016 Dear sir, According to point of taxation rules, from 1.7.12, you have to pay service tax once invoice is raised . It does not matter if you have not collected it. Also you must have adjusted from the advance, the rent for 10 months. Consequently, there is no way to avoid service tax. There is no point in fighting with inspector.

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2016 Sir no invoice was raised. Secondly sir the damges done by other company was claimed from the advance given to us .they had given us 50 lac rupees as security amount .. in this amount 48 lac was used in reparing the bunglow fixture and furniture ...

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2016 Secondly sir the security amount was refundable after the completion of tenure . And it was clearly mention in the agreement that after clearing all due's the amont will be re-funded to them . They had to provide us the bunglow in the same condition as it was hand over to them . If any repair or damages were found that has to be complete by them other wise we have right to deduct the repairng cost from security amount ....

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