Service Tax On House Rent.. CiteFin
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Service Tax On House Rent

Dilip Kumar Roy Started The Discussion:

We are paying House rent amounting to Rs.1400000/- ( Fourteen Lakhs) and deducting TDS @ 10% + 3% from the above 14 lakhs. Asper new rule the land lord is charging Service Tax on the entire amount of rent.
Whether land lord is liable to pay Service Tax on the original rent or exclusive of TDS deducted by us ?

THE LANDLORD WILL SUBMIT HIS CLAIM INCLUDING THE SERVICE TAX. HOWEVER, HE NEEDS TO BE PAID AFTER DEDUCTING TDS ON THE AMOUNT EXCLUDING SERVICE TAX. THUS YOU WILL HAVE TO MAKE THE PAYMENT OF THE SERVICE TAX PLUS THE NET AMOUNT OF RENT AFTER DEDUCTION OF TDS

DEEPAK THUKRAL

nev - 
Kindly note that service tax is to be paid only on the rent of commercial properties and not residential properties as per the service tax rules.

Incase you have not paid, kindly stop and do not pay in the future. Incase you do not believe what I state ask or find out through an expert.

I know this as I am also in the same boat.
My email id is :

YOU ARE ABSOLUTELY RIGHT, SERVICE TAX IS APPLICABLE IN RESPECT OF COMMERCIAL PROPERTY ONLY. DEEPAK THUKRAL CHANDIGARH

YOU ARE ABSOLUTELY RIGHT, SERVICE TAX IS APPLICABLE IN RESPECT OF COMMERCIAL PROPERTY ONLY. DEEPAK THUKRAL CHANDIGARH

vishwa2 - Contributing Member
Please be noted Service tax should not be excluded for TDS computation. There is a CBDT clarification on this. rgds Vishwanath

sunilmkv - 
Dear Sir,

Our Monthly Rent is 25,000. Our Landlord is asking to pay a service tax of 10.3% on above amount from april onwards... Please advice me , whether we are liable to pay the additional amount with rent . Nothing is mentioned about any taxes or fees in our lease agreement with him. Only Monthly Rent is mentioned.


sunilmkv - 
Dear Sirs,

1)My Advocate is advicing not to pay service tax since any type of taxes or extra charges are mentioned in our contract .

2)Is there any chance that We get any relaxation on the basis that we are not exceeding 10 lack cealing ?

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