Allowability of Service tax under I.Tax Act

[S.C. WADHWA]

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

[shyam sunder reddy challa]

Dear Wadhwa,

The service tax  and expenses paid on legal opinion taken on service tax matters by you not allowed as deduction/expenses under income tax act  

AI Summary

Deductibility of service tax: service tax and related legal fees are not allowable deductions against taxable income for tax purposes. Whether service tax paid under a voluntary compliance scheme by a landlord and expenses for legal advice on service-tax matters are deductible from salary and house property income; the expert advises that service tax and legal fees on service tax issues are not allowable as deductions under the Income Tax Act.