Variable service tax

[S.C. WADHWA]

Dear Expert,

We are getting advance fixed rent of building in the first week of every month from tenant. Rent is to be received by an individual salary person. Tenant also pay us 5% variable rent in the following month of his sale of the previous month. Now my query is variable rent which we will received in the month of April but pertains for the month of March, in this case the service tax on this variable amount when to be deposited. We are paying service tax on quarterly basis. Please confirm.

REGARDS,

WADHWA

AI Summary

Service Tax on Variable Rent: Deposit Upon Receipt for Previous Month's Sales, Pay Quarterly An individual receiving fixed monthly rent and a 5% variable rent based on the tenant's previous month's sales inquires about the timing for depositing service tax on the variable rent. The rent is received in April for March sales, and the individual pays service tax quarterly. The expert advises that service tax should be deposited upon receipt of the variable rent.