Service tax on rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2012 Our co. is paying rent to an individual...and the individiual's turnover has not crossed the taxable limit...but the company itself is paying service tax directly to department..whether it is right?

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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03 November 2012 Really reverse charge is not applicable in case renting of immovable properties. Please verify whether your company is paying service on his behalf?

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2012 Sir when i asked the concerned person he is saying that although individual is not registered but because company is registerd so service tax is to be paid on service provided as well as received...
But i think he is wrong because only in specific cases service receiver is responsible not on others...Am i right?plz tell me.....

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CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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03 November 2012 Correct , There is no entry in the Notification 30/2012 ST dated 20.06.2012.