Service Tax on Rent for previous years

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  1. janakiramg

    janakiramg New Member

    Sir /Madam
    Our company ( general insurance company ) taken office premises on rent. At the time of agreement, there was no mention of ST on rent. Susequently, landlord ( service provider ) has become Assessee for ST and has obtained registration certificate in the month of Dec 2013. Landlord was asked to pay ST from the year 2010 and he has informed us that he has paid ST for earlier years. Now, landlord asking us to pay ST on rent from 2010. I need clarification on the following 1. can we pay ST for earlier years. Is it in order to pay ST for earlier years when he has obtained registration cerficate in 2013. 2. Rental Agreement is silent on ST portion on rent. In that case, do we need to pay ST. 3. In case, ST needs to be paid, what are documents needs to be obtained. How to verify that landlord has paid ST for earlier years ie from 2010. 4. If ST is required to pay for earlier years as well as for current year, can we claim ST amount as input credit. Is there any time limits for claiming input credit. I was informed that input credit on rent paid for premises needs to claimed within 6 months from date of invoice raised by service provider. Is it correct. In that case, if we pay ST pertaining to 2010, can we claim as input credit
  2. Parul_Gupta

    Parul_Gupta Active Member

    Firstly, if you have not paid Service Tax for the previous years, it would be assumed that the amount paid by you would be inclusive of Service Tax.

    Ask your Landlord the reason that why is he asking for this so late and also ask for the receipts as proof of payment of Service Tax.

    PS: If you pay service tax from 2010 onwards, the tax dept will also raise concerns on why this tax is being paid so late. There are a lot of hassles involved in this.
    Udaya Chandran likes this.
  3. All you need to negotiate with your landlord that you cannot pay ST for previous years.

    This is the headache of the landlord to pay ST for previous years.

    If you are either unable to negotiate or still prefer to pay ST for previous years, you can ask for payment challans for the same.
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