27 June 2008
you will collect service tax from your client & if you pay rent in excess of rs 10 lakhs in this year then you will told your landlord to charged service tax & get input tax credit .pay difference amount service tax charged & paid difference is paid
27 June 2008
Sec.90(a)of Finance Act 1994 defines the term renting of immovable property. Sec.65(105)(zzzz) is the charging section. As per this both landlord and principal lessee are liable to service tax. Service tax charged by your principal lessee in his invoice can be taken as Cenvat credit by you and utilise the same for payment of service tax on output service. If centralised registration is applicable, then it will be a different issue for utilization of this Cenvat credit. Likewise, your principal lessee will take Cenvat credit of service tax charged in the bill raised by Landlord on him. Thus, double taxation is modulated. OK. Bi.