Service tax on immovable property
Querist :
Anonymous
(Querist) 04 June 2011
This query is : Resolved
I want to know which expenses can be claimed against rent received from immovable property for Service tax purpose.
And which are the exps. on which service tax can be claimed as input service tax against service tax payble on rent from immovable property.
Can we take the input benefit for service tax paid on commission paid to broker who helped us to rent out a property.
Can anyone help me.
A V Vishal
(Expert) 05 June 2011
No expenses can be claimed and only Exemption on Property Tax Actually Paid can only be claimed vide Notification No. 24/2007 dated 22/05/2007 w.e.f. 01/06/2007.
Only property tax paid not interest or penalty paid.
Exemption Allowed only when actual payment made.
Allowed only for corresponding month/quarter.
Rule 6(4C) of service tax rules inserted to allow adjustment of excess service tax paid if property tax is paid later.
Recalculate the earlier service tax paid by deducting property tax and calculate the excess tax paid.
Adjustment can be made within one year from the date of payment of property tax.
Intimation to the Superintendent of such adjustment is required within 15 days from such adjustment.
