Notification No. 29/2012- Service
Tax (New Delhi, the
20th June, 2012)
Under notification No. 29/2012 - Service Tax, the Central
Government, on being satisfied that it is necessary in the public interest so to
do, hereby exempts the taxable service of renting of an immovable property, from
so much of the service tax leviable thereon under
section 66B of the said Finance Act, as is in excess of the service tax
calculated on a value which is equivalent to the gross amount charged for
renting of such immovable property less taxes on such property, namely property
tax levied and collected by local bodies:
Notes:
1) Any
amount such as interest, penalty paid to the local authority by the service
provider on account of delayed payment of property tax or any other reasons
shall not be treated as property tax for the purposes of deduction from the
gross amount charged.
2) Wherever the period for which property tax paid is different from the
period for which service tax is paid or payable, property tax proportionate to
the period for which service tax is paid or payable shall be calculated and the
amount so calculated shall be excluded from the gross amount charged for renting
of the immovable property for the said period, for the purposes of levy of
service tax.
Example:
Property tax paid for April to September (6 months) = Rs.
12,000/- i.e. Rs 2,000 per month
Rent received for April = Rs.
1, 00,000/-
Service tax payable for April
= Rs. 98,000/- (1,00,000 - 2,000) * applicable rate of service tax
2. This notification
shall come into force on the 1st day of July,
2012.
[F.No. 334 /01/2012-
TRU]
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ReplyDeletesuppose i m charging rent rs10000 p.m .and collecting +s.tax@12.36%=23600
ReplyDeletenow at the time of payment i'll had t0 pay 10000-p.tax(say)rs. 2000 i.e. on rs.80000 @ 12.36%=9888. so does not it amount to exces colletion and short payment of service tax. kindly clear and mail me pankazrock@gmail.com
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