sunilmkv Started The Discussion:
We are running a textile retail shop. Our building owner demanding service tax for the rent we pay (Rent is Rs:30,000 Per month).Is there any means to get rid of it . or we are really liable to pay that . Please help. Our Leese agreement is to pay monthly Rs:30000 per month only as rent besides that not mention anything about extra amount such as taxes or levies.
Service tax on rental has come into existance from last about 3-4 years.
In my veiw, u can challenge him not to pay the service tax as he has not mentioned it in the agreement in writing. Also, u have to see whether he has become liable to pay service tax from this year ? (as service tax is to be paid by the receiver, if his receipts from rental income rs. 10 lac in a financial year. if he has become liable earlier and has not collected the service tax as extra amount then it will be favourable for u.
so, there are many points to be seen and is a matter of litigation and u have to consult a professional/Advocate.
In the nutshell, service tax has to be paid, in your case it may be borne by you or by your landlord.
In other cases, if the landlord has become liable, then the tax has to be paid to him unless provided in the agreement in writing.
While paying the Service tax, deduct the TDS on it (if your books of accounts get audited, a partnerhship firm/ company.
Found This Useful? +Vote Up This Page Via Google.
Why Vote? User validation is extremely important for good content to prosper.
Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.
Explore Topical Knowledge Areas
Interesting Relevant Discussions