Service Tax on Rental Income

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2010 Dear Sir/ Mam,

In FA 2010, The service tax on rent has been retropestively introduced from 2008, but on demanding the service tax from the tenants ,on the above basis ,they refused to give the same on the grounds that no notification / bill has not been passed yet.
I consulted a CA regarding the same and he gave me the same opinion which was "Unlike Custom and Excise, any increase or Imposition of Service Tax by Finance Bill is not applicable till the Bill is passed."

I want to know whether the finance bill regarding the same has been passed and if yes what is the notification number and date (which I can forward to my Tanents as a proof).

What solutions are available to me if the service tax was payable and the same has been defaulted on my part to avoid penality and Interest.

Regards

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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21 September 2010 Yes , Finanace bill in this respect has been passed. The letter from CBEC, DOF No. 334/1/2010-TRU,dt 26th, Feb clarifies this aspect.

However the hon'ble Delhi and Andhra Pradesh High courts have granted interim stay on the operation of these retrospective amendments.

My suggestion for paying the service tax is to wait till the decesion of above courts.

Praveen Sharma

Praveen Sharma (Expert)
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21 September 2010 Agree with the expert.

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Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2012 Dear Experts,

What is current status of Service Tax on rent of Commercial Property.

Few days back I heard there is some judgement from Supremem court of India which confirms the retrospective ammendement and all the assesses are liable to pay service tax from 2007-08.

Kindly suggest me regarding the same.

Thanks and Regards

CA Apurv Agarwal