Rent under dispute

This query is : Resolved

K Rajendra Prasad (Querist)
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21 July 2013 I have let out my building to ABC Limited for which the lease period was expired on 01.04.2012. The rent as per agreement is Rs.60,000/- per month. I have given advocate notice for vacation of the property. From the last two years I am getting rent of Rs.60,000/- only. I am not registered with service tax as my rent is Rs.7.20 Lacs only.
Now ABC Limited has come for settlement and as per settlement rent has become Rs.1.00 Lac per month. The rent was finalised on 01.07.2013. Rent arrears are received now.
How to pay service tax on it.

RENGARAJ R.K

RENGARAJ R.K (Expert)
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04 August 2013 First you get yourself registered under the act and after registration, inform your tenant that you will be charging service tax @12.36% on rent value. The property tax paid is eligible for deduction proportionately. The serivce tax for arrears can be paid after calculating the first 10 lacs.