arrears of rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2011 If the arrears of rent & current year rental income received during the current financial year exceeds Rs.10 laks. Should assessee pay service tax on both (arrears of rent & current year rental income)

Nayan Das

Nayan Das (Expert)
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04 May 2011 IF YOU PROVISION MADE FOR ARREAR RENT THEN PAY SERVICE TAX ONLY CURRENT YEAR RENTAL INCOME IF EXCEEDS RS.10 LACS. TAXABLE AMOUNT WILL BE =TOTAL TAXABLE AMOUNT - 10 LACS

Querist : Anonymous

Querist : Anonymous (Querist)

06 May 2011 Thanks for your reply
But service tax department is not agreeing, they are asking us to pay service tax on arrears also. what to do? any case laws.

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Nayan Das

Nayan Das (Expert)
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06 May 2011 YOU ARE PROVIDE RENTAL INCOME TOTAL BALANCE AND SAY TO THE service tax department WHEN THE MY COVERED EXEMPTION LIMIT SO WHY I COULD TO PAY SERVICE TAX

Querist : Anonymous

Querist : Anonymous (Querist)

06 May 2011 Thanks sir,
But they say that rent received during the year has crossed Rs.10 lakhs and you need to pay Service tax on whole amount received during the year. They also say that in service tax there is no provision for excluding the arrears of rent. is it right?
There argument is that rent received (Current year & arrears) exceeded the limit so pay. If there is any case law please provide me.

Nayan Das

Nayan Das (Expert)
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06 May 2011 NOW SERVICE TAX RULES ON 01.04.2011 ACRURAL BASIS. NOT RECEIVED BASIS. SO YOU SHOULD BE PROVIDE 2011 INDIRECT TAX BUDGET