Service Tax on Immovable Property
This query is : Open
01 May 2008
Does anyone know of any judgement passed in any court in India , in favour of landlords as far as collecting service tax amount from the tenents is concerned ???
Our tenent is refusing to pay the tax though the lease was written well befoe 01.06.2006 when this tax did not exist .
Is this a good excuse to get the place vacated , as we are not getting the Full rent ??
Our tenent is refusing to pay the tax though the lease was written well befoe 01.06.2006 when this tax did not exist .
Is this a good excuse to get the place vacated , as we are not getting the Full rent ??
02 May 2008
Service Tax on Immovable property came into froce from 1.6.2007. From this date renting of immovable property will come under Service Tax. At present there is no abatement or deduction towards input services is available. Some assessees have filed W.Ps in the respective high courts challenging the constitutional validity of service tax on immovable property. Courts have also stayed on this subject viz., bombay, Chennai and Delhi Courts. However final judgement on this issue is to be make by respective High Courts. Recently A.P High Court also given interim Stay on this issue.
Unless the court strucks down the notification of service tax on immovable property, the service provider required to pay Service tax on renting of immovable property.
Unless the court strucks down the notification of service tax on immovable property, the service provider required to pay Service tax on renting of immovable property.
02 May 2008
THE SERVICE PROVIDER IS RESPONSIBLE FOR COLLECTION AND DEPOSIT AND FILING RETURNS OF SERV.TAX.
THE REGISTARTION THERESHOLD LIMIT IS NOW RS. 9 LAKHS AND EXEMPTION LIMIT IS RS. 10 LAKHS P.A FOR SERV. TAX.
NON COLLECTION IS NO EXCUSE. BUT THE SILVERLINING IS ONLY SERV. TAX COLLECTED IS LIABLE FOR DEPOSIT.
IN YOUR CASE ,WHAT ALL YOU NEED TO DO IS REGISTER YOUR SELF UNDER SERV. TAX ACT .AND THEN PROVIDE TYOUR SERV. TAX REGN. NO TO YOUR TENANT.
ANY RENT AGREEMENT USUALLY PROVIDES A CLAUSE THAT ALL APPLICABLE TAXES / LEVIES FROM TIME TO TIME WILL BE PAID BY ANY LESSEE.
YOU MAY THEREFORE AMEND YOUR RENT AGREEMENT WITH TENANT.
IF HE/SHE STILL REFUSES TO enter a revised agreement or PAY UP SERV. TAX ,AS PER YOUR REVISED LEASE /RENT AGREEMENT , YOU MAY GIVE TERMINATION NOTICE AND TERMINATE THE LEASE.
GET A NEW LESSEE AND ENTER A NEW AGREEMENT WITH SERV. TAX CLAUSE AND that ALL OR ANY NEW TAXES/LEVIES UNDER LAW OF THE LAND ARE PAYABLE BY LESSEE .
R.V.RAO.
THE REGISTARTION THERESHOLD LIMIT IS NOW RS. 9 LAKHS AND EXEMPTION LIMIT IS RS. 10 LAKHS P.A FOR SERV. TAX.
NON COLLECTION IS NO EXCUSE. BUT THE SILVERLINING IS ONLY SERV. TAX COLLECTED IS LIABLE FOR DEPOSIT.
IN YOUR CASE ,WHAT ALL YOU NEED TO DO IS REGISTER YOUR SELF UNDER SERV. TAX ACT .AND THEN PROVIDE TYOUR SERV. TAX REGN. NO TO YOUR TENANT.
ANY RENT AGREEMENT USUALLY PROVIDES A CLAUSE THAT ALL APPLICABLE TAXES / LEVIES FROM TIME TO TIME WILL BE PAID BY ANY LESSEE.
YOU MAY THEREFORE AMEND YOUR RENT AGREEMENT WITH TENANT.
IF HE/SHE STILL REFUSES TO enter a revised agreement or PAY UP SERV. TAX ,AS PER YOUR REVISED LEASE /RENT AGREEMENT , YOU MAY GIVE TERMINATION NOTICE AND TERMINATE THE LEASE.
GET A NEW LESSEE AND ENTER A NEW AGREEMENT WITH SERV. TAX CLAUSE AND that ALL OR ANY NEW TAXES/LEVIES UNDER LAW OF THE LAND ARE PAYABLE BY LESSEE .
R.V.RAO.
02 May 2008
Thanks very much for your suggestions.
02 May 2008
Dear Mr.Rao,
Does it also mean that we DO NOT have to deposit the service Tax amount with the authorities each month till we are able to collect the same from our tanents???
So far we have been depositing the service tax amount each month from our pocket for the last 6-7 months and demanding the same from the same from the same from our tenanent ( State Bank Of Indore )vide our invoice (Rent Bill ) but they refuse to pay .
Please suggest if we should continue to deposit from our pocket. Thanks!
Does it also mean that we DO NOT have to deposit the service Tax amount with the authorities each month till we are able to collect the same from our tanents???
So far we have been depositing the service tax amount each month from our pocket for the last 6-7 months and demanding the same from the same from the same from our tenanent ( State Bank Of Indore )vide our invoice (Rent Bill ) but they refuse to pay .
Please suggest if we should continue to deposit from our pocket. Thanks!
02 July 2008
Still waiting for any response to my earlier question that since somr high courts in India have granted an interim injunction restraining the Union Finance Ministry from collecting service tax on rent of immovable property . DO WE STILL HAVE TO DEPOSIT SERVICE TAX EACH MONTH ( OUR TANENT IS REFUSING TO PAY ) OR WAIT FOR THE FINAL ORDER OF THE COURT ????
tHANKS!
tHANKS!
02 July 2008
IS IT TRUE THAT THE STAY HAS BEEN GRANTED BY THE HON. HIGH COURT RESTRAINING THE GOVERNMENT FROM COLLECTING SERVICE TAX ON IMMOVABLE PROPERTY (RENT).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Applicability
- Where to show the RCM on Rent paid to unregistered landlord
- Is Aadhar PAN linking required for opening bank account?
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- TDS NUMBER SURRENDER
- Gst Sales of FY 2023-24
- Offsetting interest income against derivative trading losses
- Application of 115BAC
- Legal heir raised refund , but refund issued to the closed account of deceased.
- RCM - commercial rent paid to URP under GST
- Whether still royalty
- 20% OF DEMAND PAYMENT IN APPEAL
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
