Dear Abhinav,

First you need to understand that service tax is a kind of indirect tax wherein the tax burden is borne by the service receiver but the liability to collect and deposit the same rests with the service provider. Further, as per the provisions contained in Finance Act, 1994 read with Service Tax(Determination of Value) Rules, 2006 where the service receiver doesn't pays the service tax amount, then in such cases, the amount received by the service provider is assumed as cum tax.

Thus, in the instant case if the tenant is not paying the service tax to the landlord, then in such a case the landlord is liable to pay the tax amount.

Hope the above suffice.

Yes, I completely agree with the answer given by Mr. ashish, that the basically its just responsibility of landlord to collect the service tax from tenant and deposit it with the govt. but the ultimate burden of service tax is on tenant. Service provider here is landlord, but tax is collected from service reciever i.e., it is the end consumer of services who has to bear the burden of service tax. And as explained by many here, if tenant is not paying service tax, then the whole amount of rent recieved by landlord, will be assumed to be inclusive of service tax and service tax will be calculated by using reverse method and paid accordingly.

The liability to collect and deposit service tax is on service provider i.e. landlord.

Service provider