03 June 2009
hello friends, we are parking contractors in mumbai, we collects parking charges on behalf of mall management and pay them lumpsum charges as in some cases rent or mangement fees or some times sharing of the collection , my query is is this structur liable to pay service tax some where as the the money collected is not inclusive of service tax.... please guide me....
03 June 2009
Collection of Parking charges on behalf of the mall is appears to be classifiable under the category of Business Support Services and attracts Service Tax. However, if the total consideration received in any financial year do not exceed Rs.10 Lakhs, there is no need to collect and pay the Service TAx in asmuch as there is an exemption up to Rs. 10 Lakhs.
03 June 2009
thanks for the reply but our ssue was there is mall X and Contarctor y.. now X enters in to contract with Y saying Y will manage the parking and collect the revenue generated and will pay X a ABC amount as management fees now when X gives me a debit note with abc amount of mangement fees and over that service tax on that abc amount, now y colect the parking charges and employ few attendents in the mall to collect the same which attarcts a monthly salary expense and over heads... and management fees is also an expense now Y has a income from the collection and in which service tax is not collected so my question was if i am not collecting service tax from customers and managing the parking would Y have to pay service tax or not
CAclubindia
