26 March 2009
A house is given on rent and service tax is collected at the rate of 10%.
The landlord has paid property tax on the house and takes exemption on the same while making payment of service tax to the Government.
For Example: Rent- 10000 Service tax collected -1030
Rent- 10000 (-) Property tax-1000 Service tax actually paid-927
My question is 1. Should the landlord reimburse the excess amount of service tax collected from tennant or 2.Should he make the payment of total service atx collected to the Govt
My query is if I have collected full amt of service tax from the tennant but paid to the govt. after deducting the property tax amount as per Notification No.24/2007-ST dated 22.05.07. What should we do now?
Reimburse the balance to the tennant. or, Payment to the Govt
26 March 2009
You can refund the same to tenant provided you have raise the invoice seperately for property tax and rent or shown property tax seperately on invoice. If you have raised an invoice for total amount as rent and charged the ST on total amount then you have to pay the remaining amount to govt. You also need to pay the interest if there is dealy in payment of service tax.
Also, make the necessary disclosure in you return as your invoice amount and corresponding ST amount will not match.
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