04 February 2009
We are taking over management of running hospitalwhich ready posstion on paying rent or royality or monthly consideration of Rs. 3.60 lacs per month The owner / landlord is demanding to pay us extra the service tax on rent or monthly consideration @ 12.36% can we get input credit of the service tax paid to landlord are medical services or part of it such room rent admission fees , operation theture charges etc under service tax and if yes under which code also i want guidence how to structure the agreement whether it should be rent agreement or roalytee agreement etc
04 February 2009
in case u take the hospital on rent service tax is payable on rent
service tax is not leviable on medical service till date so no service tax input service credit will be available
then it will be better u take the hospital on the basis of royalty payment in that case u r liable to deduct tax u/s194J @10%+surcharge if applicable+edu cess from the payment u will made to the landlord.
CAclubindia
