Service tax query

Hi friends,

 

If a banking company pays rent to a partnership firm for a immovable property, is servvice tax applicable? If yes, then who is liable to pay it.

 

thanks in advance

 

Replies (5)

As per my opinion partnership firm shall be liable for service tax if amount of Rent is more than Rupees ten lakh, wait for the further replies

Originally posted by : vinay sharma

As per my opinion partnership firm shall be liable for service tax if amount of Rent is more than Rupees ten lakh, wait for the further replies

Thats Right....yes

Agree with others, Rent is to be paid by the partner ship firm. If you writing on behalf of the banking company ensure that they have a valid invoice for payment of service tax.

 

  • Applicable w.e.f. 01.06.2007
  • Tax Rate is 12 plus cess 3 % on rate = Total rate = 12.36 % 

 SCOPE OF SERVICE



  • “taxable service” means any Service provided or to be provided(zzzz) to any person,
  • by any other person
  • in relation to renting of immovable property
  • for use in the course or furtherance of business or commerce.

Hey friends thanx a lot for  ur replies. But also other issues are involved.

1) the partnership firm is asking for reimbursement of interest payable on service tax payable since it is payable from retrospective effect?

2) the partnership has not raised any invoice for the rent?

3) also, there is a dispute that from which date the partnership firm can demand service tax? since the law has been amended from retrospective effect? This is one of the major ques where i am confused?

As per my opinion, the banking co is not liable or obliged under the law to pay interest on service tax. Also secondly the partnership firm should raise a invoice mentioning the value of service and also the service tax portion and the invoice should contain the Service tax no of the firm.

These are my opinions. Friends kindly post ur opinions and suggestions at the earliest.

 

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