INPUT CREDIT

[janakiram g]

Sir /Madam
Our company ( general insurance company ) taken office premises on rent. At the time of agreement, there was no mention of ST on rent. Susequently, landlord ( service provider ) has become Assessee for ST and has obtained registration certificate in the month of Dec 2013. Landlord was asked to pay ST from the year 2010 and he has informed us that he has paid ST for earlier years. Now, landlord asking us to pay ST on rent from 2010. I need clarification on the following 1. can we pay ST for earlier years. Is it in order to pay ST for earlier years when he has obtained registration cerficate in 2013. 2. Rental Agreement is silent on ST portion on rent. In that case, do we need to pay ST. 3. In case, ST needs to be paid, what are documents needs to be obtained. How to verify that landlord has paid ST for earlier years ie from 2010. 4. If ST is required to pay for earlier years as well as for current year, can we claim ST amount as input credit. Is there any time limits for claiming input credit. I was informed that input credit on rent paid for premises needs to claimed within 6 months from date of invoice raised by service provider. Is it correct. In that case, if we pay ST pertaining to 2010, can we claim as input credit

 

AI Summary

Insurance Company Faces Service Tax Demand from Landlord for Past Rent; Considers Legal Options and Input Credit Limits A general insurance company rented office premises without initially considering service tax (ST) in their agreement. The landlord, who became an ST assessee in December 2013, now demands ST payment from 2010. The company seeks clarification on whether they must pay ST for prior years and if it can be claimed as input credit. Responses suggest discussing with the landlord, considering legal obligations, and negotiating terms. It is noted that the gross rent amount may include ST, and input credit claims have a six-month limit post-invoice. Legal advice on negotiating or disputing the ST payment is recommended.