Municipal tax in case of renting of immovable property

in case of Renting of Immovable property the Municipal Tax paid to Municipal Corporation relevant to the Immovable property rented out, the same is to be reduced from Rental Income for the purposes of computing Service tax thereon.Now query is if such Property tax is to be paid by the occupier/tenant as per terms of Lease rental Agreement then whether such municipal tax paid/borne by occupier is still to reduced from the Rental Value for ST levy purposes or not.  

Replies (1)

Hi,

In this case Service Tax will be applicable on munciple tax also & same not to be reduced.

 

Rgds//Vaibhav
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