Rent Including tax

1013 views 3 replies

Dear All,

            One of my friend located at cuddalore, he rented a commerical place Rs.5000 for small show room. They have entered into a agreement for 9 years.

             After that our Govt of India introduced to collect service tax, now the tenent  is not accepting to pay his service tax. There is issue, the agreement itself says rent incl of all tax.

Please give some soultion .

Replies (3)
Hi, Service tax will be levied upon you only if your gross rents received exceeds 8 lakhs per annum....let me know are your friends gross rents from all commerciall shops he owns and letted out exceeds 8 lakhs per annum
Service tax is liability of users.Your friend is just assesse according to Sec.65 of finance Act 1994.The High court of Madras has decided in case of All india tax payers welfaree Ass.v/s Union of India (2006(4) S.T.R. 14 (Mad) that liability is of User only Your friend is collecting Agent.
No service tax if rent is just 5000/- PM .yes in case limit crosses to 800,000/-PA then it will be your friends liability to pay ser.tax


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