Query regarding service tax on rent of immovable property to educational

1. Taxable.

2. Prop. tax deduction available

thank you sir for short sweet and to the point answer.

Thank you too for perfect response

further if i paid 12000 as property tax and my premises was also on rent for 12 month but due to threshold limit of 10lac, tax liability comes for jan, feb, march of the financial year,

what is the elgibility of property tax, whether i can take deduction of 12000 in month of January OR property tax for the month for which st is payable i.e. rs.3000 is allowable??

kindly elaborate!!!

Actually, full amount is deducted in the same month when actually paid.

So, To conclude the same, with an example:- If im in receipt of rent on property for the month of March 2016 Rs..100000 (which was on lease for the whole year)  and paid  Rs.12000/-for the FY 2015-16 as property tax on 30th march,2016

ST LIABILITY FOR THE MONTH OF MARCH WILL BE =(100000-12000)*14.5%=>Rs.12760 INSTEAD OF Rs. 14500/-

Kindly Confirm the assertion, is it correct??

Taking your monthly rent as Rs. 1 lakh, you are supposed to get registration with service tax department as soon as your rent exceeds 9 Lakhs. 

So, your registration gets due in January,2016. Supposed you paid rs. 12K property tax anytime before 31st jan, 2016. You have not crossed your excempted limit of 10 lakhs.

So, from February 2016, you are supposed to charge service tax @ 15% including cess, over and above your rent exceeding 10L. So, rent amount including service tax would be appx 1.132 lakhs, for February and  excacty 1.15L for March 2016, with your liability to pay the service tax so collected from tenant to treasury, before next 7th date.

Note: This 10 lakh basic exemption is only for first year. Once crossed, from next year you are liable to charge and pay service tax from first rupee rent itself.