service tax on " rental of immovable property services'

This query is : Resolved

Rajesh A M.com,MBA,ACS,LLB (Querist)
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08 April 2009 Dear friends,

a lessor got regn under ST on 24.03.09 for " rental of immovable property services'and claiming ST from 01.04.2008 ( i.e from FY begining onwards ).
query is;
1.Is it correct charging ST with retrospective effect?
2.Will ST applicalbe on the full value of rent paid?
3.Is ST applicable on arrears of rent also?
4.The property belongs to HUF and rent paid to individual co parceners by separate cheques after TDS.But only one co parcener charging ST out of his share of rent.Is it correct or we have to pay voluntarily to all the owners?

Dayal

Dayal (Expert)
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18 April 2009 query is replied as under ;
1.If service has been provided and service tax was not charged, then it is correct charge ST with retrospective effect

2.Yes ST applicalbe on the full value of rent paid
3.Yes ST applicable on arrears of rent also as services were provided during the levy of tax
4.This must be due to the reasons that they all must be falling under the threshold exemption of 10 lacs. If the service provider is not charging the onus is on them to discharge the liability.

By a written arrangement you should state that any liability arising in future due to ignorance of not charging the taxes, the same shall not be paid at a later date.