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Service tax on rental payment of immovable property

Queries 988 views 1 replies

CA/CS DEEPAK MANDOWARA

ASST. MANAGER

28 Points Joined January 2012

Dear All,

My company paid Rs.290000/- per month for 2011-12 regarding Residential accomodation for Employees to a vendor.

Their is nothing mentioned regarding payment of service tax.

From April 2012 onwards company have to pay Rs.330000/- per month to vendor, do we have to pay service tax from April only OR we have to pay service tax after paying Rs.10 lacs to vendor?

& What about the payment made in 2011-12 without service tax?

Replies (1)

No. Service Tax will be levied if one person rented his own property to another person for residential purpose .Also you have to pay Service Tax only when Service provider charged it on his bill for providing respective service. So, your company do not need to pay Service Tax in this case only you must deduct TDS U/s 194I on your rental expenses paid to vendor.