One of our clients have not paid the landlords Serive tax on rent wef May-09 based on the ruling by Delhi High Court.
Request you to clarify the following pioints:
What is the current position? Should we pay the service tax along with the arrears?
Should we make a provision of service tax payable for the F/y 2009-10.Is it a contingent liability?
If we make the payment now accounting treatment for both the Finanacial years 2009-10 & 2010-11. and also in case if we take it as a contngent liability last year?
09 September 2010
Delhi HC in Home Reatil has again stayed the operation. Trent Ltd in AP HC has stayed the retrospective application. Matter of rent not a service at all is still a matter in doubt. Unitl the decision we would not know. Notices being issued to safegaurd the revneu as we understand.
CAclubindia
