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service tax invoice

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Ravi Kumar

ACCOUNTS OFFICER

21 Points Posted on 05 August 2009

I have agreed to receive the Rent of my property Rs. 40,000/- per months and I am paying the Property Tax Rs. 60000 per year . Our clients are doing the invoice is : Rent - 40,000

Less: Property Tax : 60000/12 = 5000

Net: 35,000

Service Tax 10.3% 3605

Total 38605

TDS 15.45% 5964

Net Cheque Amt 32,640

They are deducting the Property Tax. Is it correct and send the correct invoice. and How to file the inmy returns

Replies (1)

EKALABYA TALUKDAR

SERVICE TAX CONSULTANT

609 Points Posted on 30 August 2009

Please go through the followin content and take advice of your lawyear and do accordingly

RENTING OF IMMOVABLE PROPERTY

It is well settled by several Supreme Court judgements that the act of manufacture is the taxable event in excise, the act of import is the taxable event in the case of import duty, the act of exportation is the taxable event in the case of export duty, and the act of sale is the taxable event in the case of sales tax. In the same vein the act of adding value is the taxable event in the case of value added tax. And in the case of service tax the taxable event is the act of rendering service. It cannot be the realisation of payment for service.