Liability to pay service tax on rent paid to landlord
Debashis Saha
(Querist) 10 June 2009
This query is : Resolved
X Co.Ltd.,is a tenant of an immovable property. A Suit was filed and the Ld. Court directed X Co.Ltd.to deposit the rent with Rent Control Authority. Is there any liability of X Co.Ltd to deposit the service tax payable (not demanded)on rent alongwith the original rent
A V Vishal
(Expert) 10 June 2009
Dear Saha,
In my opinion you need to pay the service tax on the rent even though it is being deposited in the court. Further you should deduct necessary TDS on the rent under Income Tax Act, if the rent exceeds Rs.1,20,000/- per annum.
Manish Singh
(Expert) 11 June 2009
as per my view the service tax over the rent is not to be deposited with the rent controller.