TaxTMI 
TaxTMI 
TaxTMI 
I want to know the notification No. applicable for Abatement in Service Tax for the amount paid as Municipality Tax. Service is - Renting of Immovable Properties.
Abatement in Service Tax for the amount paid as Municipality Tax
Sumit Sharma
Notification 24/2007: Deduct Property Tax from Service Tax on Rental Properties; No Deductions for Interest or Penalties. A user inquired about the notification number applicable for abatement in service tax concerning municipality tax for renting immovable properties. The response clarified that property tax paid can be deducted from the service tax payable, with a proportionate deduction allowed. For example, if Rs. 12,000 in property tax is paid for six months, a Rs. 1,000 monthly deduction can be claimed. Notification No. 24/2007 is relevant, and deductions are not allowed for interest or penalties related to property tax. (AI Summary)