Service Tax Liability, Service Tax

[Manjit Choudhary]

I am going to pay ₹ 6,50,000/ to Municipal Authorities to convert my Residential property to Commercial property.

Can I claim this as deduction for computing my Service Tax Liability.

This amount is being paid as Conversion Charges & Parking Charges to Muncipal Authorities.

Posts / Replies

[KASTURI SETHI]

No. you cannot claim deduction on conversion and parking charges to arrive at Service Tax liability inasmuch as these are not taxes.

[Manjit Choudhary]

I am thankful to all of you who have replied & commented on my service tax liability for exemption on Conversion & Parking charges paid to MCD.

This was a residential property & only after paying these charges to Muncipal Corporation as Conversion Charges & Parking Charges,I am using it for commercial use & hence commercial rent.These charges are not taxes collected by Civic Authorities?

Moreover conversion charges will be deposited every year alongwith Property Tax.

So even that will not be the deduction I can claim?