Service tax on renting of immovable property
ravi chauhan (Internal auditor) (59 Points)
25 October 2016ravi chauhan (Internal auditor) (59 Points)
25 October 2016
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(183191 Points)
Replied 30 October 2016
When the service tax for the rent paid? If in the beginning of the year, only returns are to be revised.
ravi chauhan
(Internal auditor)
(59 Points)
Replied 11 November 2016
service tax is being paid in september every year.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 14 November 2016
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.
Mir Irshad Ali
(Partner)
(192 Points)
Replied 14 November 2016
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.
ravi chauhan
(Internal auditor)
(59 Points)
Replied 15 November 2016
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?