Re: service tax liability

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Hemant (Querist)
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05 June 2009 Assessee is engaged on the business of renting of room sales for Guest in Delhi and registed under sales tax.The same room was taken on lease rent basis.The landlord charged @Rs.4,25,000 p.m.as per agreement. The landlord is individual and not registered under service tax.Now, no bill/invoice is raised by the Landlord.The assessee company booked lease rent expenses in the books of account as per agreement.

My question is whether the service tax liability is goes upon the landlord or not.

Second question is if the landlord is not registered under service tax then the liability of service tax can be arosen to assessee company.Is company is eligible for input service tax credit?

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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05 June 2009 The question of liability of rental of immovable property ( not residenital)is not settled.
Rs.10 Lakhs basic exemption is available if the liability were to be acepted.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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05 June 2009 Luxury tax is levied for renting of rooms for guests.

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Hemant

Hemant (Querist)
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06 June 2009 Thanks!!
Mr.Madhukar ji,
But there is a exemption from service tax for renting of immovable property in the hands of service provider.
AS the provision of service tax,the service of renting of immovable property to any commercial complex including hotel, any guest house etc. is excluded from the definition of specified services.