LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Urgent Service Tax Query

SUNIL RATHORE (accounting) (43 Points)

22 April 2011

I Am Registered in Service Tax , i used to get Rent from one of my immovable property. but now the tenant is not paying service tax because of stay on Rent from Immovable property. so i am not depositing Service Tax to Government.

Should i file Service tax Return of NIL or should i skip the Return.

Reply
Follow
Share

10 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 22 April 2011

if tenant is not paying service tax than you have to deposit it from your own pocket to government and file your service tax return otherwise you may have to pay penalty…

Pankaj Arora (Learner) (3134 Points)
Replied 22 April 2011

you have to assume that tenant paid rent inclusive service tax and than you can calculate service tax amount by making back calculation….

Devendra (Chartered Accountant) (4775 Points)
Replied 22 April 2011

formula for reverse calculation is:-

suppose you get Rs. 50000 as rent, then the service tax element from the given amt. will be as follows:=

50000x10.3/110.3 = 4669 will be the service tax amt. including E.cess and SHE cess.

Regards.

Devendra K

ARUN (Articleship) (47 Points)
Replied 22 April 2011

yes, you have to pay service tax.

Pavan Bharadwaj (Practicing Chartered Accountant) (353 Points)
Replied 22 April 2011

You have to pay servicetax treating rent collected by you is inclusive of service tax and file return. There is departmental clarification no. 334/1/2010- TRU dated 26.02.2010 in which definition of taxable service has been amended so as to provide that activity of renting of immovable property per se would also constitute a taxable service. Thus it is also a taxable service and you can rightly collect service tax from the tenant.

Ritesh Jain (CA, CS in Job) (675 Points)
Replied 22 April 2011

The stay on service tax on immovable prop is only by a court and does not find any santity in department..moreover the appeal of revenue is pending in higher appealte authority...so meanwhile you have to pay tax on ur rent by back calculation method..

Nayan Das (ACCOUNTS MANAGER) (981 Points)
Replied 23 April 2011

IF YOUR RENTAL INCOME LESS THAN 10 LACS SO YOU INFORM THE TANENT YOU HAVE NOT COLLECT THE SERVICE TAX BECAUSE YOU HAVE NOT GOT THE SERVICE TAX REGISTRATION SO YOU SERVICE TAX AMOUNT REFUND THE TANENT.

Ravinder Grover (CA) (83 Points)
Replied 23 April 2011

As per Provisions related to Service Tax, any payments received in relation to services provided or to be provided shall be taken as inclusive of Service Tax..

It means payments which you have received are already inclusive of S.Tax.

You can not argue that you don't receive s.tax, so you will not deposit the same to government, it has to be deposited if service is taxable & out of receipts you have to deposit the same.