Dear Expert,
I am getting salary income and income from house property on commercial building. Tenant has not paid S.T due to agreement was silent. I have also not deposited in the light of Delhi High court Judgement. But the full income after getting 30 percent rebate and property tax rebate was shown in Income tax return. Now I have deposited 50 percent of S.T under VCES, being service provider. Now my query is whether I will get benefit of S.T paid in income tax return for the year 2013-14 and expenses paid on legal opinion taken on S.T. matters.
Regards,
WADHWA
Service tax and related legal expenses are non-deductible in income tax returns for 2013-14 under the Income Tax Act. An individual receiving salary and rental income from a commercial property inquires about the deductibility of service tax and legal expenses related to service tax in their income tax return for the year 2013-14. The tenant did not pay service tax due to an ambiguous agreement, and the individual has paid 50% of the service tax under the Voluntary Compliance Encouragement Scheme (VCES). The response clarifies that service tax and related legal expenses are not deductible under the Income Tax Act. (AI Summary)
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