IMP INFO REGARDING SERVICE TAX ON RENTING
Sumit Batra
(Querist) 18 May 2010
This query is : Resolved
The Hon’ble High Court of Delhi has once again stayed the proceedings in matters pertaining to Service Tax on RENTING OF IMMOVABLE PROPERTY. The very essence of the recent amendments to the Finance Act, 1994 whereby amendment has been made to the category of Renting of Immovable property service has been challenged. The High Court has directed that no service tax can be recovered from tenants, landlords as the case may be till the S.L.P. regarding the same issue is pending in High Court. However, it was made clear that decision of Delhi High Court in Home Solutions case, wherein the services provided in relation to Renting of Immovable Property services will still attract service tax and also, the recovery in this regard can be made from the assessee’s.
The matter was listed today i.e. 18.05.2010 in Delhi High Court and the petitioner was Home Solution Limited.
Vineet
(Expert) 19 May 2010
Thanks Mr Sumit.
Actually which proceedings have been stayed?
The decision in Home Solutions case has already been challenged before Supreme Court and the recent amendement is purported to nullify the effects of this decision only.
So what is the status now? Can landlords recover service tax from tenants or not as the department is after them subsequent to recent amendement in which very basis of Delhi HC has been nullified by declaring "Renting" per se as Service.
Would you please provide a copy of HC order.
Sumit Batra
(Querist) 19 May 2010
The recent amendment has been challenged. Stay of recovery of Service Tax till the matter is finally decided by Supreme Court.
Notice has been issued to the Service Tax Department regarding the amendments.
