Service tax HC

This query is : Resolved 

04 May 2009 The High court has given the decision that no service tax is leviable on the renting of commercial property hence forth. So will this be applicable to all over India or just in Delhi.

And if yes and according to this order we do not charge service tax on the rent but if the government challenges this order in the Supreme Court, which is more likely then what will be required to do after that. Can we charge/ adjust in the subsequent invoices.

One more thing the DH says that that this order is applicable with retrospective effect from the day the tax was levied on commercial property rental.

Please do reply in brief.

06 May 2009 There is a restricted applicability. However the important point here is that the argument that pure renting is not liable as it is not a value added service is a logic which is applicable everywhere. Further the point that the ST is only on services in realtion to rent and not rent itself is a view which may require further examination.
Earlier to the decision also many landlords have challenged the same or have paid under protest on grounds of jurisdiction, that it is not a service and that it is a return on capital eneployed.
Ideally the conservative manner would be to pay the same under protest. Later refund possible.

06 May 2009 What if we do the other way round i.e. service tax is collected now like earlier and refund to the party if supremecourt does not resist to Delhi high courts order.
If yes can we clim the refund from deparment the st paid.


23 September 2009 Dear Mr. Choudhary, I have the same query as you had, may I know if you have got any answer to it?

Thanks in anticipation of reply..

CA Rashmi Gandhi



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries