01 July 2009
In a case Landlord has remitted service tax for the rent received fro tenant.Whether the amount can be recovered from tenant? If so under what provision and section of the service Tax Act or of the Finance Bill? I want to know specifically the section since it seeks judgement under court...
02 July 2009
Normally the ST law is a destination based consumption tax. Therefore the burden is to be borne by the consumer. The SC in the case of All India Tax Practioners Ass also confirms the same. However when it comes to rent the question which tenants are asking is whether there is any legal liability. The Delhi HC also held that there is no liability.
As of date it appears that we have to wait for the SC judgement which is expected to be in favour of the landlord.