SERVICE TAX QUERY ( for allowability of service tax of previous years paid in current year by an individual, in his Income tax return or not.
An individual has given his property on rent from 01/07/06 @ Rs. Twenty lacs alongwith 5 % commission on sale per month inclusive of all taxes at present and in future, if any, as per agreement.
After levy of service tax w.e.f. 01/07/07, we raised bill on tenant for Rs. 2000000/- plus services tax leviable at that time. But he refused to give service tax by quoting the clause mentioned in the agreement i.e. Rent is inclusive of all taxes leviable at present as well as in future if any.
We paid service tax for the period from 01/07/07 to 31/03/08 and claimed the same in our Income tax return as under:
1. Rent inclusive of all taxes recd. 2000000*9 18000000
2. 5% commission on sale 2000000
3. Less; Property tax paid 100000
4. Service Tax @ 12.36% Paid 2189070
5. Actual rental income shown in Income tax return 17710930
From 01/04/08, no service tax was paid in the light of first judgement on service tax received from Delhi high court and we filed our income tax return for the year 01/04/08 to 31/03/09 by taking income of Rs. 2000000X12 (rs. 24000000/-).Plus 5% commission on sale amounting to Rs.3000000/-. Total Rs.27000000/-.
Now our query is :
As per finance budget 2012-13, the govt. has made amendment in Section 80 of the Finance Act, that no penalty to be imposed if service tax payable upto 06/03/12 alongwith interest to be paid within six months from the date of assent from the president on the finance bill.
We paid service tax for the year 2008-09 amounting to Rs.27 lacs without interest amounting of Rs.15 lacs on 24/03/12 and now we want to get benefit in our I.T. return for the A.Y. 2012-13. Will it be allowable to us? And if yes whether Rs.27 lacs or Rs. 27-15=Rs.12 lacs only.
Please give your expert opinion on the matter by quoting any notification or judgement etc.