Sanjay Agarwal (MANAGER) (165 Points)
05 April 2010
Our newly formed Pvt Ltd Co has taken an office from 1st April 2010 on Rent =Rs.35,000 pm. from an Individual
Whether we are liable to pay Service Tax on such rent.
Whether the individual (land lord), being an individual has any exemption like as Not Eligible till the minimum exemption limit of Rs.10 lacs is not exceeded.
Nicky
(Chartered Accountant)
(245 Points)
Replied 05 April 2010
Service Tax is a Indirect Tax viz the impact and incidence falling on tow different people in the given case your company has to bear the impact i.e. the service tax.
You are bound to pay service tax only once he charges you the same ..
Yes he can avail the benefit of small service provider upto Rs. 10 Lacs of rental in a year in order to not levy service tax
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