UT Estate Office fails to recover service tax

 

Chandigarh, March 25
The UT Estate Office has failed to recover lakhs of rupees as service tax on ground rent of prime commercial properties in Sector 17.

Pointing out the anomaly, the office of the Accountant General Punjab and UT in a communication to the Chandigarh Administration has pointed out that despite the laid down rules on ‘renting of property services’, the estate office has failed to recover service tax to the tune of around Rs 20 lakh.

While examining the record of the Estate Office in respect to 23 shop-cum-offices (SCOs) and booths of Sector 17, the AG office in its observation has pointed out that while the Estate Office received the ground rent of Rs 91,33,500, no service tax was paid by it. But the Estate Office has failed to file a reply.

Similarly, it has been pointed out that in respect to two commercial properties in Sector 43, the Estate Office failed to pay the service tax on ground rent along with interest amounting to Rs 10.21 lakh. Though the Estate Office raised a demand for the service tax, the amount was not recovered.

Many similar cases on non-recovery of service tax to the tune of lakes of rupees exist in the record of the Estate Office, sources said. The observations have been pointed out during an inspection of the office record in 2011. The sources reveal that renting of property services has been made liable to service tax. The renting of immovable property include renting, letting, leasing, licensing or similar arrangements of immovable property for use in the course of furtherance of business or commerce.