TMI Blogservice tax paid on value after abatementX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts, Dear Experts, We are issuing invoice on tenant for Rs. One lac per month with break up as under:- Rent amount ₹ 89000/- Plus service tax @12.36% ₹ 11000/-. But we are depositing service tax of ₹ 10780/- after getting abatement of house tax paid ₹ 2000/- per month, And by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the end of the year we booked misc income ₹ 2640/-. Diff of service tax claimed and paid. Now my query is whether this procedure is OK or not. Please give your expert opinion. Regards, WADHWA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Reply By KASTURI SETHI - The Reply = Your procedure is correct. Deduction on account of property tax is allowed under Notification No. 29/2012-S.T., dated 20-6-2012 .Earlier it was allowed under Notification No.24/2007-ST dated 22.5.2007 (Now rescinded). - Reply By S.C. WADHWA - The Reply = Dear Expert, Thanks a lot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for your reply. If my procedure is correct then give further reply about the followings:- A. Bills issued to tenant for showing rent ₹ 89000/- and Service tax ₹ 11000/-. B. Amount booked in our books accordingly Rent ₹ 89000/- and S.T. ₹ 11000/- C. S.T paid after getting abatement ₹ 107 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80/- and booked accordingly in books. D. Difference in service tax payable is ₹ 220/- per Month. E. Total diff. in year is ₹ 2640/- showing service tax payable in books. F. Where I should book this amount of diff. either in Misc Income or rental Income. G.Tenant will get cenvat for ₹ 11000/- where as we are paying Service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax ₹ 10780/-. H:- Bills issued to tenant as mentioned at point no.A above or according to the reply earlier received for showing gross rent ₹ 89220/- and Service tax ₹ 10780/-. REGARDS, WADHWA - R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eply By KASTURI SETHI - The Reply = Wadhwa Ji, There must not be any difference between Service Tax charged from service receiver and ST deposited with Central Govt. You cannot keep any amount of Service Tax with you. If u r charging ₹ 100,000/- which is inclusive of ST of Rs.ST of ₹ 11,000/- you will have to deposit the same amount with Govt. Then no deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. You will have to change your billing system. I have no commerce background. Regarding accounting system you will have to consult C.A. ₹ 2000/- of house tax is deduction from gross receipt and not abatement. Benefit of deduction should also go to the consumer otherwise House Tax is your responsibility. Bill should be like this Gross receipt ₹ 1,00,00/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... House Tax 2,000/- Cum Tax Value 98000/- Rent 87220/- ST 10780/- If u do not like this billing system u will have to consult CA otherwise no relaxation from ₹ 11000/- - Reply By KAST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... URI SETHI - The Reply = With new rate of ST @14%, Bill should be raised in this way:- Gross Rent 1,00,000/- A Deduction on account of property tax: 2000/- B Cum Tax Value 98,000/- (A-B) Net Taxable Value 85965 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- C ST @14% 12035/- D E- 98000/- =(C+D) - service tax paid on value after abatement - Query Started By: - S.C. WADHWA Dated:- 28-6-2015 Service Tax - Got 4 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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