Service tax

146 views 3 replies

PANKAJ KUMAR SRIVASTAVA

AUDIT EXECUTIVE

399 Points Joined May 2013

RESPECTED SIR, X IS GETTING RENT FROM 3 TENANTS RS.4.00 LAC EACH AGGREGATING TO RS. 12.00 LACS. IS X LIABLE TO PAY SERVICE TAX ? IF YES CAN X RECOVER THE AMOUNT OF SERVICE TAX FROM TENANTS AS THE AMOUNT OF RENT FROM EACH TANENT IS LESS THAN RS.10.00 LACS SIR, PLEASE CLEAR MY DOUBT

Replies (3)

CA Saurabh Singh

Practising Chartered

974 Points Joined June 2015

Hi Pankaj,

Yes, X is liable to pay service tax as the aggregate payment exceeds the threshold limit.

Yes, X can recover the service tax amount from the tenant irrespective of the fact that individual rent does not exceed the thrteshold limit.

CA Harshal Totla

Chartered Accountant

2229 Points Joined May 2014

Hi Mr.Pankaj, can i pls know the rent is received against which kind of property?
as regards shifting the burden of service tax liability to service recipient, yes you can recover it from tenants as service tax is an indirect tax whose liability can be passed on to service recipient and it is your statutory right.

karan jit singh

Consultant

1299 Points Joined November 2010

Originally posted by : PANKAJ KUMAR SRIVASTAVA

RESPECTED SIR,
X IS GETTING RENT FROM 3 TENANTS RS.4.00 LAC EACH AGGREGATING TO RS. 12.00 LACS. IS X LIABLE TO PAY SERVICE TAX ? IF YES CAN X RECOVER THE AMOUNT OF SERVICE TAX FROM TENANTS AS THE AMOUNT OF RENT FROM EACH TANENT IS LESS THAN RS.10.00 LACS
SIR, PLEASE CLEAR MY DOUBT