Service tax payment on property tax or not.

[chaganti srinivas]

Dear Sir, we have one issue i.e. we paid service tax on rent after deduction of property tax, but Service Tax Superindent is not accepting that he is saying service tax payable should be on gross amount only, but we saw one Notification no. 24/2007 Service tax as per this service tax applicable is only net amount (after deduction of Property tax).if this notification is amended pls. give amended notification No. please give your valueable sugestion and case laws on this issue. BENARJEE. GOVADA

AI Summary

Debate Over Service Tax on Rent: Should It Be Calculated After Deducting Property Tax Per Notification No. 24/2007? A query was raised regarding whether service tax on rent should be calculated after deducting property tax. The issue arose because a Service Tax Superintendent insisted that service tax should be paid on the gross rent amount. However, Notification No. 24/2007 states that service tax is applicable on the net amount after property tax deduction. Respondents advised presenting this notification to the officer. They argued that municipal tax should be deducted as it reduces the service value rendered by the landlord, suggesting that the notification remains valid and applicable.