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Clarification on service tax on pay and park facilities

abatements 630 views 1 replies

salamat

director

36 Points Posted on 07 August 2015

Dear All,

i have a query regading the application of service tax.please guide and advice

A is Owner of Mall, leased ou parking lot to B for monthly rent /consideration/fees of Amount Rs X.

B being a contractor /collectng agent who retains the revenue collected and pay monthly rent of amount X

total amount collected is Y

Rent paid to A is X plus service tax

Expenses(salaries and others) is Z

now my question is how much service tax is B liable to pay to govt

Replies (1)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9615 Points Posted on 09 August 2015

Example:-

The invoice raised to a client is as follows:

Monthly rent : INR 2,40,000/-
Service Tax @ 10.3% INR 24,720/-
_______________________________________
Total amount: INR 2,64,720/-

TDS deducted at the rate of 10% on the total invoice amount i.e
INR 26,472/-. This is practiced by most companies availing the services. As per this invoice amount you need to pay the service tax mentioned above.