Renting of immovable property

This query is : Resolved

CA Kruti Shah (Querist)
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28 November 2012 Suppose A collects rent on immovable property from B,
Charges ser tax on bill of rs 100 and collects the same.
Also , A pays property tax of rs 25
Is A liable to pay st to govt rs 75 or rs 100??
My doubt is mainly that u hav to collect full but pay less, or collect less and pay the full amt so collected?

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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28 November 2012 Property tax is to be deducted form rental amount not from the service tax.

Suppose: Rent ,1000
Property Tax-100

Taxable service =1000-100
i,e 900

Service tax =900*12.36%=111