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is property tax deductible from gross amount received

Service Tax (Legacy) 1171 views 2 replies

hello........friends ,

my question is whether property tax paid by owner of the property is deductible from gross amount received perttaning to related service provided.?

property tax paid by tenant is fully deductible.

please answer as early as possible.

thanx in advance

Replies (2)

If property tax is paid by tenant, then you do not include it in taxable service even though he has paid the tax on annual or semi annualbasis..

 

However, if your rent includes property tax to be paid by you, the chances are you have paid it on an annual or semi annual basis. If you paid on annual basis and you receive monthly rent from tenant, then you have to divide the annual payment by 12 and in each month you deduct the tax amount what it would have been on monthly basis and then calculate the service tax.

The porperty tax paid by the landlord is deductible from the rent for the purpose of calculating the ST.

The ST on renting of Immovable property itself is a matter which is doubtful and now before the SC.


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