Liability of service tax for land lord

[Pramodh Gadiya]

What will be liability of the landlord if the service tax on the rented property is not paid by the tenant and in turn the same is not paid to serviec tax department.

AI Summary

Debate on Service Tax Liability: Landlords vs. Tenants; Escrow Accounts Proposed for Efficient Tax Collection. A forum discusses the liability of service tax on rented properties, focusing on whether the landlord or tenant is responsible for payment. One participant references a Delhi High Court judgment, indicating that while the issue is disputed, the landlord (lessor) is typically responsible for paying the tax to the government, regardless of whether the tenant (lessee) pays them. Another participant agrees, suggesting that making the tenant liable could improve tax collection, especially in organized sectors like banks and retailers, and proposes using an escrow account to manage payments.