Service Tax Liability

[Guest]

I am going to pay ₹ 6,50,000/ to Municipal Authorities to convert my Residential property to Commercial property.

Can I claim this as deduction for computing my Service Tax Liability.

This amount is being paid as Conversion Charges & Parking Charges to Muncipal Authorities.

AI Summary

Deductions for Conversion and Parking Charges Not Allowed in Service Tax Calculations, Clarifies Respondent; Further Queries Raised An individual inquired about claiming deductions for conversion and parking charges paid to municipal authorities when calculating service tax liability for converting a residential property to commercial use. A respondent clarified that these charges are not considered taxes and thus cannot be deducted from service tax liability. The individual expressed gratitude for the responses and further questioned if annual conversion charges paid alongside property tax could be deducted, implying they are not taxes collected by civic authorities.