24 April 2009
As per the recent Delhi High Court order , the service tax on renting of immovable property has been held uncostitutionaland a stay has been granted to the renters. Does that mean that we can stop paying service tax to the govt.??? We are the landlords and our tanents has refused to pay the tax as it is not in our lease agreement and that time this tax did not exist. Please advice if we can stop paying from our pocket and what could be the consequences????
The matter will ultimately go to Supreme Court. If at all the Apex Court rules against the Delhi High Court's verdict, the service providers(land lord) will be required to pay the unpaid tax along with interest.
If you can take the risk of interest, it is advisable to stop further payment.
Question being judicial in nature, please seek more opinion.
25 April 2009
What is the penalty and reate of interest which will have to be paid by us in case supreme court gives a judgement of the union govt. and we finally have to pay this tax ????
CAclubindia
