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Service Tax Payment

Parag P Shah (Assistant) (130 Points)

26 November 2007

Dear Sir

I had rented my shop and the tenant pays me only the Rent amount and not the service tax amount. so is their my liability to pay service tax amount according to my payment liability. if yes then please explain me. i have recd rent from June07 to Nov-07. and i have not made payment of Service Tax.

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4 Replies

G Teja (Partner) (49 Points)
Replied 26 November 2007

You have to pay the rent on your shop. It comes under letting of property service. Hence you have to pay the service tax on the rent collected by you from the tennant.

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Dayal (Gen. Manager - Indirect Taxation) (3434 Points)
Replied 27 November 2007

Even if your tenant does not pay service tax, still your liability arises. In such cases you have to work backword for service tax from the amount received by you. for example Rs. 112.36 is your rent and service tax is not paid for Rs 12.36/-. The amount received by you is Rs. 100/-. In this example your liability will be 100/112.3*100= Rs. 89 . the service tax payable is Rs. 11/- And once the payment is made by the tenant you can pay the balance amount in the similar manner

nageswararao (Mgr - Commercial) (142 Points)
Replied 30 November 2007

There are no of points leads our service tax liablity 1) If our total services T/O exceeds Rs 800000/- 2) The rented property used for Commercial or Business purpouse 3) Shall we eligble for issuing Service Tax Invoice i.e, we are registered one or not etc., Pls provide all the above point then we justify the Service Taxation liablity. B.V.K.Nageswara Rao, Ph: 099891 57666, Email: nageswararao.bommakanti @ ril.com

shyam kishor porwal (Chartered Accountant) (183 Points)
Replied 03 December 2007

Dear Mr. Parag, Your service tax liabilty will be incurred only if your total rented income is more then Rs. 8 lac per annum, and rented property used for Commercial or Business purpouse. If you received more then 8 lacs then you are laible to pay service tax. If you received gross amount then service tax liabilty will be calculated through this formula: (Rent Receipt*12.36/112.36) You can contact to me at cashyamkporwal @ gmail.com 9999032405