Issue - 'Service tax on letting out of Immoveable property'
C.P. SEKAR
when service tax is charged by the bankers, insurance companies, telecomunication service provieders, such service tax is collected from the customers without their consent and added to their bills or debited to their account without the knowledge of the customer and the customer is paying without raising any question? But when it comes to 'Service tax on letting out of Immoveable property' why this debate? Here also the act of letting out of immoveable property is treated as Service and when it is treated as service the landlord is also entitled to recover the service tax from the tenant by raising bill? Is it correct?
Debate on Service Tax for Leasing Property: Should Landlords Recover Tax from Tenants or Bear It Themselves? A discussion forum addresses the issue of service tax on leasing immovable property. The query questions why service tax is automatically collected by service providers like banks and telecom companies, but debated in property leasing. A respondent agrees that landlords should recover service tax from tenants, noting initial objections may arise since the service is new. Another respondent raises the point of lease agreements where the owner bears all taxes, suggesting potential complications in such cases. (AI Summary)