Is service tax levied on security deposit?
Amit Kumar Verma (CA Final CS Professional) (501 Points)
18 June 2012Is service tax levied on security deposit?
CA Akshay Yetiwar
(ca)
(254 Points)
Replied 18 June 2012
I think Service tax is not levied on security deposit as the amount is in taken only to secure the transaction. and finally at the time of settlement the security deposit is either refunded or adjusted against outstanding balance...
so NO SERVICE TAX on SEcurity deposit
CA Ganesh Karthik
(Chartered Accountant)
(368 Points)
Replied 19 June 2012
Hi Mait.. Generally there is no Service Tax on security deposit.
But if you adjust the security deposit with the actual consideration to be receivable, then the same will be liable to service tax.
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