I have paid an amount to Muncipal Authorities for conversion of land use.
Can I claim deduction for this amt while computing my servicetax liability.
Land Use Conversion Charges Not Deductible for Service Tax; Considered Capital Expenditure, Not Taxes A discussion forum addresses a query about the deductibility of land use conversion charges when computing service tax liability. The original poster has paid these charges to municipal authorities for converting residential property to commercial use and seeks to know if these can be deducted. Respondents clarify that conversion charges are not considered taxes and thus are not deductible for service tax purposes. One participant notes these charges are typically a one-time capital expenditure, although the original poster argues they are paid annually. The discussion references applicable laws in Rajasthan for context. (AI Summary)