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Service tax

PANKAJ KUMAR SRIVASTAVA (AUDIT EXECUTIVE) (399 Points)

14 June 2016

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

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3 Replies

CA Saurabh Singh (Practising Chartered ) (974 Points)
Replied 14 June 2016

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)
Replied 14 June 2016

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)
Replied 15 June 2016

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