Under the erstwhile Service tax law, Notification No. 29/2012-ST provided exemption to the taxable service of renting an immoval property from so much of service tax leviable thereon u/s 66B, as in excess of service tax calculated on the value which is equivalent to the gross amount charged for renting less the taxes on such property, viz. property tax levied and collected by local bodies. However, interest, penalty and any other charges paid to local authority in relation to delayed payment / non-payment of property tax were not allowed as deduction.
Would supplier receive similar deduction under GST regime?
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