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Service tax on Rent

Sandeep Gupta (CA Practice ) (28 Points)

19 June 2007

Dear Readers

please clear the following issues on service tax on Rent

1. what is the provisions of cenvat/credit of input tax on swervice tax on rent

2. if any municipal tax, lease tax (paid to DDA) or other property tax being paid...how to adjust

please clarify

sandeep

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4 Replies

k. Ganapathyvel (Accounts Manger) (13 Points)
Replied 20 June 2007

service tax

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shobhit rastogi (student) (16 Points)
Replied 20 June 2007

dear friend, credit can be utilised on paid basis. no adjustment regarding municipal tax, lease tax .

d.john bosco (excise officer) (35 Points)
Replied 22 June 2007

you can adjust/deduct the property tax paid for the period yiou are paying ST. Ie from PT paid from 01.06.2007

Dilip Darji (392 Points)
Replied 22 June 2007

(1) There is no specific provision for availment/non-availment of CENVAT credit on services of rent. As long as Inpout serrvice is used for taxable output serices, you are elligible to avail CENVAT credit. (2) As per Noti.No.24/2007-ST dt.22/05/07, property tax need not be added to the value for the purpose of making payment of services of Rent.Notification also provides an example how to adjust, Property tax, while Calculating Taxable Serrvice of Rent, when lump sump or periodical property tax is paid. The said Notification is available in net.