05 August 2010
As per Delhi High Court rent on Immovable property held unconstitutional so we can not collect the Service tax from the tenant. Later on in the Finance Bill the definition of Renting is amended and Immovable property renting is included in the Service tax net retrospectively from 1.6.2007. So as of Now what is the status on Renting of Immovable Property as far as Service Tax is concerned? Do we have to collect the Service and pay to the Government?
Can any body guide me on this matter. Thanks in Advance
05 August 2010
Yes, to avoid unnecessary complications, service tax should be collected and deposited in due course as per law. The lessee has to honour the law. ALso, he may easily avail input credit of the amount of service tax so paid against output service tax liability of tenant, if any.
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