URGENT - Rental Agreement - now I have to pay service tax?

jman (SW Business) (34 Points)

02 February 2009  

Hello, I recently entered into a business lease/rental agreement wherein my rent is a sum of Rs. 2,10,000 (2.1lacs) per month. Also, I (LESSEE) am to pay for electricity and other charges in respect to meter reading, etc.

Now, I've received an invoice from the landlord (LESSOR) for a total of 2,35,956, this being additional rs. 25956 for 12.36% service tax. My question is, am I required to pay this additional 25956 rupees, as there is no mention of this in the lease agreement, and I was never informed of such prior to signing lease. Also, in the lease it states the LESSOR "shall promptly pay during terms of lease, all the existing and future rates, municipal or other taxes, cess, assessments and outgoings in respect of the leased premises and the land on which it stands."

I don't believe the LESSOR is entitled to charge me an additional 25956 rupees, as I was never made aware of this *extra* charge, before receiving invoice a month later. I believe my rent payment should be 2.1lacs, as mentioned in the Lease Agreement.

Please advice, as now I am going thru a messy issue with landlord, as I had to terminate lease because of business (or lack thereof), and there are several months rent involved, and he is withholding my 21lacs (10 months) deposit.

(Also, the landlord has other tenants in his commercial building, so he is definitely over the 8.0 lacs credit limit).

Thank you!