Service Tax on the renting of immovable property
VINOD KUMAR SEHGAL
(Querist) 05 October 2009
This query is : Resolved
Delhi High Court by its judgment dated 18/04/2009 allowed the petition filed by Home Solution Retail India Ltd, a pantaloon group company challenging the levy of Service Tax on the renting of immovable property. As I have taken liability for service tax on rent for city show room at Ludhiana. Please let me know, whether payment is to the made or not.
A V Vishal
(Expert) 05 October 2009
Technically you have to pay the Service Tax since the case law cited by you is decided by Delhi High Court and not Punjab High Court, but since the matter is pending before the Supreme Court you can keep it in abeyance but ultimately it will be the final decision of the Hon'ble SC in the matter, however under law you cannot with hold taxes collected by you as a contingent liability, the possibility of non collection will entail shifting the liability & consequent payment of ST on you in case the Hon'ble court stays the operation of the HC judgement.
Raj Kumar Makkad
(Expert) 06 October 2009
Fully agreed with Vishal. Since the case cited by you is still pending before SC, you cannot take its benefit in ur case.
Vineet
(Expert) 11 December 2009
The Supreme Court has yet not stayed the operation of Delhi High Court. The situation is dicey and in fact CBEC has issued a circular in July, 2009 instructing its field formations to enforce collection of service tax.
