23 March 2016
We are body corporate & in rearing poultry birds & hatchery business. We pay poultry birds shed Rent Rs.100000/- P.M. to individual person. The individual person is not giving any type of bill or receipt. We pay rent by cheque. In this case can we are liable to pay service tax on rent. ( Is rent is incorporated in reverse charge mechanism list )
23 March 2016
Reverse charge will not be applicable to you in this case. However, the terms of the agreement should state that the rent is inclusive of all types of taxes. In case that clause is not there tomo he can come up and ask you for service tax. So be careful
CAclubindia
