15 December 2007
Service tax on rent who shall be pay whether rent payer or a land lard. if total rent payment not exceeding the 8 lacs whether service tax is applicable.
15 December 2007
The landlord should charge the tax in the invoice or similar document for rent, collect it from tenant and remit the same to Govt. Account.
The ultimate burden is on the tenant like other indirect taxes.
The limit of Rs. 8 lac does not have any relation to rent payment.
It depends on the total rent received by the landlord from all tenents including receipt for other taxable services.
15 December 2007
As per my information, Landlord, being the Service Provider,has responsibility to make payment of Svc. Tax. Whether he would collect Svc. Tax from Tenant or not may depend on arrangement in between Landlord and Tenant.
But I would like to know whether it is true that Tenant is held responsible by the statute in the event of failure on the part of Landlord to collect and pay Svc. Tax, if so, could any one please provide me with detailed references to study.
16 December 2007
No. Tenant can not be held responsible. In case the tax amount is not collected by the landlord, the amount received by him would be treated as inclusive of service tax.