11 May 2009
Dear Sir, I am from Mumbai and need your advice on Service Tax Matter: The Delhi high court has ordered that service tax on rent of Immovable property is unconstitutional. And the same is pending in Supreme Court.
So till the Supreme Court gives order what we have to do: - Should we collect the ST from the tenant or not to collect. If we opt for later option and Supreme Court gives contradictory order then can we collect the service tax waived from the tenant?
11 May 2009
Alternatively, You may choose not to collect service tax on such services and be ready for the long drawn legal battle with the department. However, your chacnces of winning ther case would be high based upon the Delhi HC order and the Decesion of SC if it is in favour.