Can Property Tax Deduction be claimed in both Income Tax and Service Tax?

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  1. mohanb123

    mohanb123 New Member

    Can Property Tax on rent income be deducted in both the Income Tax and Service Tax calculations?
  2. Saurabh2017

    Saurabh2017 New Member

    only income tax.
  3. gaurav_kumar

    gaurav_kumar Well-Known Member

    Yes, it can only be claimed in Income Tax
  4. ZED

    ZED Well-Known Member

  5. mohanb123

    mohanb123 New Member

    That Gazette notification seems interesting. Any update on that.
  6. ZED

    ZED Well-Known Member

    I don't think that it has been withdrawn, but if two members have said, then its better to re-confirm.

    If the deduction was not claimed in respect of property tax as stipulated under E/N 29/2012 (cited above), then assessee may claim ADJUSTMENT of excess service tax paid in the future period.
    That means excess ST paid can be adjusted from next period's ST liability.

    I am citing the relevant rule for your reference
    [Service Tax Rules]

    Rule 6(4C)” Notwithstanding anything contained in sub-rules (4), (4A) and (4B), where the person liable to pay service tax in respect of service renting of immovable property, has paid to the credit of Central Government any amount in excess of the amount required to be paid towards service tax liability for a month or quarter, as the case may be, on account of non-availment of deduction of property tax paid in terms of notification No.29/2012-Service Tax, dated the 20 th June, 2012, from the gross amount charged for renting of the immovable property for the said period at the time of payment of service tax, the assessee may adjust such excess amount paid by him against his service tax liability within one year from the date of payment of such property tax. The details of such adjustment shall be intimated to the Superintendent of Central Excise having jurisdiction over the service provider within a period of fifteen days from the date of such adjustment.
    mohanb123 likes this.
  7. mohanb123

    mohanb123 New Member

    Hi Zed,

    Thanks very much with the information. I will check with my accountant on this information. Actually I was confused when my CA informed me that I can reduce my service tax payment by deducting the Property tax I have paid for that period. I was discussing this with other partners and they were also confused because we claim property tax in income tax anyway. So, whether Government is allowing deductions at two places (IT and ST) was one doubt and on top of it whether the service tax paid to Govt. vs. service tax invoice raised can be different was another question. As such I do not want to end up with a scrutiny and explain to them all these details. Just wanted to be doubly sure when I do my next quarter ST payment.

  8. ZED

    ZED Well-Known Member

    You can go for it, no issues. I think I have given plenty of information in this regards.
    It's not double deduction.
    Property tax can not be said to be as service element. Nor, it is your income. So, it's just to provide the exemption in both the statute.

    For other matters you may contact me through email.
  9. Pjkn824

    Pjkn824 New Member

    can anyone provide any case law relating to ST Nt no- 29/2012 it will give more clarification
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