Service tax on rent (office rental expense)

This query is : Resolved

asma (Querist)
Follow

11 August 2015 For rental expense exceeding 10 lacs if the land lord is not charging service tax is the company who is using the premises liable to pay service tax, please clarify?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

11 August 2015 The company using the service is not liable, only the land lord is liable for service tax payment to govt.

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
Follow

11 August 2015 Renting of immovable properties is chargeable to service tax only when it relates to furtherance of business of service provider.

No reverse charge is applicable for renting of immovable properties hence company need not pay any service tax.

Upgrade to CAclubindia Pro. Subscribe Now!