Service tax

[MOHAMED YACOOB SHARIFF]

Sir, one of my claient is in receipt of rental income from commercial property at chennai, he has not registered witht the service tax till, now if he gets registered with the service tax, is it ok to collect the service tax from the tennant from now onwards and remit the same.

pl clarify

[YAGAY and SUN]

Dear Sir,

The provsions pertaining to charging of Service Tax on Renting of Immovable Property had been held valid and law had been amended retrospectively. 

You would have to charge the sevice tax for all previous time period and deposit it with statutory interest.  Department will also levy penalty on you.

[NANDKUMAR SAGWEKAR]

Renting of commercial property is a taxable service. Your client is required to pay the service tax on such rental income but also verifty that whether he is providing the other taxable services ? also see the small service provider exemption is applicable in his case ? prepare worksheet for the same and then go for other procedures.

 

Thanks

 

A M SHEMBEKAR

CELL 9421187122

AI Summary

Service tax on renting of immovable property requires registration and retrospective discharge of unpaid tax with interest and possible penalties.
Renting of commercial property is a taxable service and, following retrospective amendment, a taxpayer who has not registered must register, calculate unpaid tax for prior periods, remit that tax with statutory interest, and expect potential penalties; the taxpayer should also assess whether other taxable services are provided and whether the small service provider exemption applies.