Service tax on renting of immovable property

I have a query in regards to renting of Immovable Property. My company has provided a land on lease to a company. The payment of lease were received annually in september every year. And as per agreement, my company issues a single bill for the lease every year. now during service tax audit by department. they are demanding interest for not paying service tax on monthly basis. they consider it in continious supply of service. Department considers it as a default. is it necessary to issue monthly invoice? is it valid?
Replies (5)

When the service tax for the rent paid? If in the beginning of the year, only returns are to be revised.

service tax is being paid in september every year.

The earliest of the 3 events for normal transactions: receipt of payment, billing or completion of service. As no billing or reciept and as per contract it is September. Not required to be paid earlier.

It could be said tobe constinuos supply under which also the contract specifying that payment to be made in september would apply unles spayment recived earlier or billed earlier.

Since the contract specifies that the payment of the rent amount is to be made in September every year also the invoice is being issued in september and also payment is being received in september then the point of taxation will be september (5th of Oct.) in the instant case.

Thank you all for your valuable comments on the point.

Then why the department is asking for interest on late payment of service tax and issue of monthly bills for rent?

can argument on the same be made with department?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
02 November 2026
Audit Executive

SRJP & Co LLP

Kochi

CA Inter

View Details
Company
Featured 29 October 2026
Accounts Executive

Synergy Keystone

Chennai

B.Com

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
Featured 07 November 2026
Chartered Accountant

DPV & Associates

Chennai

CA

View Details