Rent on Service Tax.
Manish Kumar Gupta
(Querist) 05 February 2010
This query is : Open
Dear All
We remember that levy of service tax on ‘Rent’ was held ultra vires by Delhi High Court in case of Home Solution Retail India Ltd. Vs. UOI and others (2009) 20 STT 129. Union of India- who was the respondent in said judgment filed a SLP in Supreme Court, praying inter alia for stay of operation of Delhi High Court judgment. However, the Supreme Court did not stay the operation of Delhi High Court judgment, but issued notices to parties concerned to file their replies. During pendency of matter in Supreme Court, Revenue authorities instructed their field officers by way of Instructions dated 15thJuly 2009 to take necessary action to safeguard revenue by either pursuing the tax payer to pay up the service tax or resort to means under law. The Instructions issued on 15 July 2009 were challenged by SSIPL Retail Ltd. in a Writ petition filed before Delhi High Court who has taken strong objection to said Instructions and it was assured by Additional Solicitor General, appearing on behalf of the Union of India, that corrective steps will be taken to issue further instruction, in super session of earlier instructions, to not to demand service tax till such time Supreme Court decides the SLP.
We want one clarification that if it is applicable on the properties situated in other states.
Please resopond.
Regards,
Manish
We
