TaxTMI 
TaxTMI 
Service tax after tds
03 Jul 2007 
3 Replies 
1479 Views Asked by
Guest 
Service tax on rent: landlord bears liability but may recover from tenant; TDS is deductible on gross payment.
Service tax on rent is the landlord's statutory liability, who must register and pay the tax but may recover it from the tenant. Contractual terms stating taxes are included or predating the levy may affect civil allocation but do not displace the statutory charge. TDS under the income tax provisions is to be deducted on the gross rent payable, inclusive of service tax. (AI Summary)
Service tax on rent is the landlord's statutory liability, who must register and pay the tax but may recover it from the tenant. Contractual terms stating taxes are included or predating the levy may affect civil allocation but do not displace the statutory charge. TDS under the income tax provisions is to be deducted on the gross rent payable, inclusive of service tax. (AI Summary)
Please inform if Service tax on rent will be payable by Landlord or Tenent. will it be charged after TDS