TaxTMI 
TaxTMI 
I was having a residential property & from 1st April I gave it on rent for Commercial Use.I will be paying abt.Rs6,50,000/ for conversion & parking charges.
Can I claim this as deduction for computing my Service Tax Liability.
Service Tax Liability
02 Sep 2015 
4 Replies 
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Guest 
Service tax on renting of immovable property: conversion and parking fees are not deductible; only property tax deduction applies.
Conversion and parking fees paid when a residential property is let for commercial use are not deductible from the gross value of renting for service tax valuation; only property tax paid to local authorities is deductible. If the conversion and parking charges constitute taxable services used in providing the renting service and service tax was paid on them, input tax credit may be available to adjust against service tax liability. (AI Summary)
Conversion and parking fees paid when a residential property is let for commercial use are not deductible from the gross value of renting for service tax valuation; only property tax paid to local authorities is deductible. If the conversion and parking charges constitute taxable services used in providing the renting service and service tax was paid on them, input tax credit may be available to adjust against service tax liability. (AI Summary)