Bookmarks   Feedback   Annual Subscription   New User   Login  
Tax Management India .com   
   TMI - Tax Management India. Com   
Duty drawback    *    MEIS procedure for export    *    Employees sent on deputation to subsidiary/ associate companies (Service Tax)    *    Subcontract Manufacturing by 100% EOU for a Main contractor (Outside India) who is in contract with an Indian Brand Owner for supply of Ready Made garments    *    CENVAT CREDIT    *    After GST - Machinery booking on commission    *    New Issue / query = Export against the INR Purchase Order    *    Where supply of goods without transfer to title has to be treated as service, whether on importation of such goods i.e. deemed services, customs duty and GST would be levied simultaneously?    *    First stage dealer    *    determination of assessable value for job work transaction    *    Cabinet approves Agreement and the Protocol between India and Cyprus for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion    *    Appointment of Common Adjudicating Authority by DGRI    *    Boarding and Rummaging of vessels, aircrafts and vehicles    *    service tax payament-reg    *    Education Cess / Secondary & Higher Education Cess    *    Seeks to further amend Notification No. 96/2008-Customs dated 13.08.2008 so as to include 'Republic of Guinea-Bissau' in the list of countries eligible for preferential tariff under the said notification    *    Amends Notification No.22/2003-Central Excise dated 31.3.2003    *    Regarding Filing of returns through digital signature    *    Union Finance Minister Shri Arun Jaitley to inaugurate the Conference on “International Arbitration in BRICS: Challenges, Opportunities and Road ahead” on August 27, 2016 in the national capital;    *    TAXABLE EVENT UNDER GST
Discussions Forum
Home Forum Service Tax
← Previous Next →

service tax on rent (lease rent) - Service Tax

#1 Issue Id: - 1886
Dated: 19-4-2010
service tax on rent (lease rent)

  • Forum

We had given commercial properties on lease.The tenant are not paying service tax refering the decision of Delhi High Court. Please let me know what about Service tax deposit liability on our part. How the rent received on such commercial properties to be shown in Return ST-3  Early reply will be awaited Ashok Vijay

Post Reply

Posts / Replies


#2 Dated: 20-4-2010
By:- Brijesh Verma
Dear Mr. Vijay, as far as the matter of High Court decision is concerned, the same has already been set aside by the amendments proposed to be made by Finance Bill 2010. Now, the lawmakers have specifically expressed that mere renting is a service in itself. So confusion regarding taxability is now no more persistent. However, since the amendment would be considered as carrying a Charging effect, so its retrospective applicability might be an issue in question. Keen look would also be given to section 76 of the Finance Bill 2010 which is "Validating Provision" which says that all previous demand would be collected along with interest and penalty. Overall, the liability for paying tax on rental Income has been confirmed, but a wait and watch situation remains untill the bill attains finality.
#3 Dated: 25-4-2010
The tenants who are eligible to avail CENVAT have no problem in paying ST, however, other tenatns are not willing to pay. The owners association should make representation to the Finance Minister to provide for rverse charge method- to make tenants liable to pay servie availed. This will benefit revenue also because in that case most of big entitiels taking commercial properties on rent will be liable to pay ST. Whereas in case of landlord liability, many landlords get exemption due to threshhold limit. The following article on this website may be referred to: Budget suggestion: Reverse charge method for tax on rent if the levy persist. CA Mrs. Uma Kothari

Post Reply


← Previous Next →
what is new what is new

Advanced Search

Latest Updates




More Options


|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map || ||

© [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version