TaxTMI 
TaxTMI 
TaxTMI 
| 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. So that Income tax return can be filed accordingly. REGARDS, WADHWA | ||||||||
Abatement of service tax on Property tax payment.
S.C. WADHWA
Expert Clarifies Service Tax Abatement on Property Tax Payments, Citing Section 73A; Full Amount Must Be Deposited A discussion on a forum addresses a query about the correct procedure for abating service tax on property tax payments. The original poster issues invoices to tenants with a breakdown of rent and service tax, depositing a lesser amount after deducting property tax. An expert responds, clarifying that the full amount collected as service tax must be deposited with the exchequer, citing Section 73A. The expert provides a corrected calculation, emphasizing that any excess collected should be properly accounted for, ensuring compliance with tax regulations. (AI Summary)