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Service tax on Rent

1485 views 4 replies

Sandeep Gupta

CA Practice

28 Points Joined May 2007

Dear Readers

please clear the following issues on service tax on Rent

1. what is the provisions of cenvat/credit of input tax on swervice tax on rent

2. if any municipal tax, lease tax (paid to DDA) or other property tax being paid...how to adjust

please clarify

sandeep

Replies (4)

k. Ganapathyvel

Accounts Manger

13 Points Joined June 2007

service tax

shobhit rastogi

student

16 Points Joined June 2007

dear friend, credit can be utilised on paid basis. no adjustment regarding municipal tax, lease tax .

d.john bosco

excise officer

35 Points Joined June 2007

you can adjust/deduct the property tax paid for the period yiou are paying ST. Ie from PT paid from 01.06.2007

(1) There is no specific provision for availment/non-availment of CENVAT credit on services of rent. As long as Inpout serrvice is used for taxable output serices, you are elligible to avail CENVAT credit. (2) As per Noti.No.24/2007-ST dt.22/05/07, property tax need not be added to the value for the purpose of making payment of services of Rent.Notification also provides an example how to adjust, Property tax, while Calculating Taxable Serrvice of Rent, when lump sump or periodical property tax is paid. The said Notification is available in net.