Respected Sir,
We have taken a fectory premises on Lease in Gurgaon (Haryana). Our landlord is Charging Service tax on Rent amount. Please suggest, that Service tax on Rent for Immovable Property, is eligible. Should we reimburse the Service tax to our landlord. Is it mandatory for our landlord to get his registration in this service also.
Kindly give reference of any circular/ Notification in support of your valuable reply.
Best Regards.
Pradeep Kaushik
Service Tax on Renting Immovable Property Valid; Tenants Advised to Pay and Consider CENVAT Credit Amid Supreme Court Deliberations. A forum user inquired about the applicability of service tax on rent for immovable property, questioning whether they should reimburse this tax to their landlord and if the landlord must register for this service. Respondents clarified that service tax on renting immovable property is applicable, despite a Supreme Court stay on certain judgments. It was advised to pay the service tax as charged and consider CENVAT credit. The discussion highlighted that multiple High Courts upheld the tax's validity, with ongoing Supreme Court deliberations. It was suggested that tenants could advocate for a reverse charge mechanism for better tracking and potential refunds. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
