TaxTMI 
TaxTMI 
| Dear Experts, | |||||||
| Dear Experts, We are issuing invoice on tenant for Rs. One lac per month with break up as under:- | |||||||
| Rent amount ₹ 89000/- Plus service tax @12.36% ₹ 11000/-. But we are depositing | |||||||
| service tax of ₹ 10780/- after getting abatement of house tax paid ₹ 2000/- per month, | |||||||
| And by the end of the year we booked misc income ₹ 2640/-. Diff of service tax claimed | |||||||
| and paid. | |||||||
| Now my query is whether this procedure is OK or not. Please give your expert opinion. Regards, WADHWA | |||||||
service tax paid on value after abatement
28 Jun 2015 
4 Replies 
2430 Views Asked by
Service tax on rent: property tax deduction permitted but supplier must adjust billing and remit correct tax.
Deduction for property tax from gross receipts is permitted under Notification No.29/2012-S.T. when determining the taxable value of rent for service tax; billing must reflect gross receipt, property tax deduction and the net taxable value, the supplier must remit the full tax liability and may not retain any difference between tax charged and tax deposited, and the service recipient may claim input credit on the service tax as charged. (AI Summary)
Deduction for property tax from gross receipts is permitted under Notification No.29/2012-S.T. when determining the taxable value of rent for service tax; billing must reflect gross receipt, property tax deduction and the net taxable value, the supplier must remit the full tax liability and may not retain any difference between tax charged and tax deposited, and the service recipient may claim input credit on the service tax as charged. (AI Summary)