06 August 2008
Hi, If the owner of the property receives excess service tax from his tenant what is the treatment to be done with that excess Service Tax amount
07 August 2008
Service Tax on Rent is to be charged after deducting Muncilpal Taxes. Say Rent is Rs.100000 Pm and M.Tax is 5000pm. I charge Service Tax on 95000 i.e11742. Where as the tenant has no idea about the muncipal taxes what i hv paid so he pays S.Tax on the entire amount of Rs.100000 i.e 12360. The excess of Service Tax receivee is (12360-11742) 618. What is the treatement to be done with this amount.