20 April 2009
Dear Sir, I heard some where in the TV News Channel that Supreme court/ High Court has directed that no service tax is livable on rental properties income. Please tell me what the status is exactly.
20 April 2009
Yes Yur information is correct. Delhi High court has given this verdict on 18th April 2009, & levy of service tax on Rentals have been verdicted as Unconstitutional By the Hon Delhi High Court. So No service Tax on Rentals
20 April 2009
Now that the ST on rental as per the DHC has been decided what should the tax payer do is the question? Whether they should stop paying as the Revenue is sure to go in appeal to the SC.
It is certain now that the vast majority would stop paying the ST and those who have paid would claim the refund as long as they have not collected from the tenants. Tenats who have paid also would apply for refund. Huge amountof litigation- time and effort wasted of Goivt and tax payer to no avail.
The attitude of taxing anything and everything due to the need to augment the huge Govt. Cost of running causes so much misery . No doubt that India has been rated as having the most miserable tax laws in the world.
CAclubindia
