Service tax payment on property tax or not.

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..... Service tax payment on property tax or not.
Query (Issue) Started By: - chaganti srinivas Dated:- 23-9-2010 Last Reply Date:- 19-10-2010 Service Tax
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Service Tax
Dear Sir, we have one issue i.e. we paid service tax on rent after deduction of property tax, but Service Tax Superindent is not accepting that he is saying service tax payable should be on gross amount only, but .....

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..... we saw one Notification no. 24/2007 Service tax as per this service tax applicable is only net amount (after deduction of Property tax).if this notification is amended pls. give amended notification No. please give your valueable sugestion and case laws on this issue. BENARJEE. GOVADA Reply By Rama Krishana: The Reply: Notification no. 24/2007 dated 22-5-2007 is still valid you have rightly clai .....

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..... med the benefit of this notification. Show the copy of this notification to the concerned officer, he should appreciate the same. Reply By DEV KUMAR KOTHARI: The Reply: I hope by property tax you mean local tax on property like municipal tax. Municipal tax is to be deducted from the rent as rightly stated by Shri Rama Krishna. You can also place argument that to the extent of municipal tax paid/ .....

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..... payable , the value of service ( if at all renting is considered a service) rendered is reduced because , municipal tax is in fact , in nature of a fees for services rendered by municipality in the locality where property is situate and such services are essential services. Another aspect is that if MT is paid by tenant to the municipality, then also it will not come into value of service rendere .....

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..... d by landlord, (if at all renting be a service). Thus to the extent of municipal tax payable, the landlords do not receive any value of service provided by renting of property, if at all it be a taxable service.
Discussion Forum - Knowledge Sharing .....

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