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pooja (Querist)

04 April 2012 I want to know what when a company which is trading in mobile its not some BIG service provider but thy received rent income which is more thn 10lakhs n that why thy are charging service tax on that.. i would like to know that can we get input tax credit frm services taxes paid on telephone bills , freight, professional bills???

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

04 April 2012 This is because they are providing a service of renting of immovable property. Since the aggregate amount of collection exceeds Rs. 10 lakhs, the service provider is liable to charge service tax.

The company CANNOT claim input service tax as the same has NOT Been used for providing the service of renting of immovable property.

CA Prashant Gupta

CA Prashant Gupta (Expert)

04 April 2012 Renting of Immovable property is taxable service as per service tax law and there turnover exceed the service tax net hence they have to charge service tax.

Only inout credit of related services can be claimed

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