TaxTMI 
TaxTMI 
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
Service tax payment on property tax or not.
23 Sep 2010 
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Service tax valuation on rent: municipal/property tax deductible from rent, reducing taxable value under applicable notification.
Service tax on rent is to be assessed after permitting deduction for municipal or property tax under the applicable valuation notification. Municipal/property tax operates as a fee for local services and, whether paid by landlord or tenant, does not constitute value received by the landlord and therefore should be excluded from the taxable value of rent for service tax purposes. (AI Summary)
Service tax on rent is to be assessed after permitting deduction for municipal or property tax under the applicable valuation notification. Municipal/property tax operates as a fee for local services and, whether paid by landlord or tenant, does not constitute value received by the landlord and therefore should be excluded from the taxable value of rent for service tax purposes. (AI Summary)