Who will pay Service Tax if nothing mentioned in Rent Agreement?

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  1. TANU23

    TANU23 New Member

    In case an immovable property is taken on lease, by entering into a lease agreement, in such a case who is liable to pay service tax service recepient or service provider, if no clause is mentioned in the lease agreement regarding service tax? Also for the purpose of calculation of service tax the amount of lease rental is to be considered as inclusive of service tax?

    Please reply.
    Thanks in advance.
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    If nothing is mentioned in the agreement, it would be assumed that the payment made by the service recipient to the service provider for using the land and building appurtenant thereto is inclusive of Service Tax.
     
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