Service tax on immovable property

This query is : Resolved

ammaji rajulapati (Querist)
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24 December 2013 Friends,

In calculation of service tax on immovable property service tax is calculated Gross rent (means Rent + Hire) or after added TDS amount (Means Rent + Hire + TDS )* 12.36% which process is right. Please clarify it.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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24 December 2013 Understand with the help of the following eg:

Rent 1,00,000
Add: Service Tax @ 12.36% 12,360
Total Invoice Value 1,12,360

TDS will be deducted by the tenant on Rs. 1 lakh only.

TDS = 1,00,000*10% = 10,000

ammaji rajulapati

ammaji rajulapati (Querist)
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24 December 2013 sir,

Rent 1,00,000
Add TDS 10,000
Service tax 12.36% 13,596
Total Invoice value 1,03,596

This process is acceptable . please clarify it.

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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24 December 2013 No this is not correct. TDS is not added while preparing the invoice.

The landlord takes only rent & service tax in the invocie.

TDS is deducted by the tenant on the rent amount.

ammaji rajulapati

ammaji rajulapati (Querist)
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24 December 2013 Thanku sir.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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24 December 2013 You are welcome. You should use the thanks button to convey your thanks.