Liability of service tax on renting of immovable property

[sunil jain]

In case of renting of property can the service tax be enforced through legal action on the tenant even though the rent agreement is silent on the isuue.Pl. reply in view of section 12B of Central excise act and section 68 of service tax

[Surender Gupta]

There is not provision in the law to enforce the recipient of services to reimburse service tax liability of the service provider, if the contract is salient on this issue. However, ideally, service recipient may reimbursement the service tax amount if mutual consent is made.

AI Summary

Service tax reimbursement: no statutory obligation on service recipients to pay provider absent mutual agreement.
There is no provision in the applicable law that imposes a statutory duty on the recipient of services to reimburse the service tax liability of the service provider when the contract is silent; reimbursement depends on contractual agreement or mutual consent.