Updation on Immoval Property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 March 2010 What is latest update of Service Tax on Construction of a Flat / Property and Rent on Immovable Commercial Property . What will be impact on Rent on Immovable Commercial Property for last year on which Service Tax has not be paid by the tenanat in view of Recent High Court Deceision

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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17 March 2010 In the budget 2010 amendment is proposed in the definition of renting of immovable property service. Consequently, the activity of renting itself is a renting service liable to service tax levy. The amendment proposes to give retrospective effect from 01/06/2007. If the President gives her assent to the budget amendment, as you know, it will become the law of the land and those who had not paid service tax for earlier years, taking shelter of the Delhi High court decision in the case of Home solutions Retail India Vs UOI 2009 (237) ELT 209, will be liable to pay service tax with interest.