A company is acquiring a place on rent and giving out on rent for commercial use, as and when necessary.
Company is paying rent + service tax to the owner of the place.
Client is paying rent + service tax to the company
When company is paying service tax to the Government, can the company get credit of service tax paid to the owner.
Example
Company paying rent to owner Rs.1000 + 10 = 1010
Company charging to client Rs. 2000 + 20 = 2020
Service tax payable by the company is Rs. 20-10 = Rs. 10 only and not Rs. 20
While the owner of the place pays service tax of Rs. 10.
Am i correct? Both the services comes under Rent on immoveable property.
CAclubindia
