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Rental Income

Thajudeen (Managing Partner) (26 Points)

02 May 2009

What is the current status of service tax on rental receipts

Has any appeal filed against the Delhi High Courts Judgement

M. Thajudeen FCA

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CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 03 May 2009

Recent Case Laws - February 25, 2009

Income Tax - MAYAWATI Versus CIT, DELHI (CENTRAL-I) and ORS. [2009 -
TMI - 32451 - DELHI HIGH COURT]
Date of Decision: February 13, 2009
Petitioner prays are for quashing the notice issued u/s 148 & 142
(1) – service of notice – receipt of notice - notice was duly
addressed and stamped - notice was not barred by limitation and
retained its legal efficacy - Petitioner has failed to disclose any
grounds justifying the exercise of extraordinary jurisdiction vested
in this Court by virtue of Article 226 of the Constitution of India –
therefore, petition is dismissed

Income Tax - VIJAY JAIN Versus C.I.T [2009 - TMI - 32450 - DELHI
HIGH COURT]
Date of Decision: February 16, 2009
Addition made on account of undisclosed rental income - whether the
Tribunal was justified in law in sustaining addition to the extent
of Rs.36,918/- out of the total addition by holding that 1/11th of
the total rental income is assessable in the hands of the appellant
despite the fact the appellant was not owning any property – held
that ITAT correctly applied the law

Service Tax - GOA TOURISM DEVELOPMENT CORPORATION LTD. Versus CC &
CE, GOA [2009 - TMI - 32449 - CESTAT, MUMBAI]
Date of Decision: November 11, 2008
Appeal – memo of appeal without verification part filed with the
Superintendent was within time – subsequently appeal filed with Comm.
(A) after expiry of time limit, should be treated as filed on the
date it was submitted to Supdt. – hence there was no delay in
preferring appeal - Commissioner will have to deal with that appeal
on merits, of course, subject to Section 35F of CEA - appeal is
allowed by way of remand – since delay is satisfactorily explained,
condonation of delay is granted

Service Tax - MSPL LTD. Versus CCE, BELGAUM [2009 - TMI - 32448 -
CESTAT, BANGALORE]
Date of Decision: September 25, 2008
Appellants transport the goods in their own vehicle to the buyer -
revenue proceeded on the ground that they are providing GTA
services - Therefore, they are liable to discharge the service tax
on the freight charges collected – in the present case, the buyer is
a person who actually pays the freight. It is very clear in terms of
Rule 2 (1) (d) (v) that the liability to pay service tax is cast on
the person who pays the freight - therefore, the appellant has no
liability to pay the service tax

Service Tax - HILLS & BLUES Versus DCST, DIVISION-II BANGALORE
[2009 - TMI - 32447 - CESTAT, BANGALORE]
Date of Decision: November 11, 2008
Penalty - appellant are engaged in the service of Tour Operators -
they have been availing 90% abatement in terms of Notification Nos.
39/97-ST and 1/2006-ST - appellant had wrongly availed 90% abatement
for paying service tax in respect of the service rendered as `Rent a
Cab Operator' - the fact that the service tax had been paid
immediately after lapse was pointed out is not in dispute –
therefore, penalty u/s 78 is set aside - however, the penalty
imposed u/s 77 is upheld

Income Tax - Commissioner Of Income-Tax. Versus Alfa Laval (India)
Limited. [2009 - TMI - 32446 - SUPREME Court ]
Date of Decision: November 1, 2007
Valuation of obsolete items as certified by the auditors can not be
rejected on the ground that list of obsolete items was not produced
by the assessee - "written back" and "written off" of depreciation
are two different terms therefore adjustment made by assessee under
circular with regard to deprecation and working out of relief u/s
32AB can not be denied - Interest from customers and sales tax set
off are eligible for deduction u/ s 80 HHC