sivaraman
(superintendent)
(31 Points)
Replied 27 October 2009
Dear sathis, Service tax has only been imposed on renting of commercial property and non commercial property was never brought under service tax net. So do not expect any notification number. As for as rent on commercial property is concerned again there is no exemption notification. only the delhi high court has decided in a case that rent collected from commercial properties is not a taxable service under service tax law. The department has filed an appeal with the Honble supreme court against the delhi high court verdict. in effect, there is no exemption notification number for rent.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 28 October 2009
The matter is before the apex court. The fact that the court did not stay the DHC decision may indicate that the DHC decision has some strength.
In my view the renting of IP may notbe liable. However dept to be ifnormed of your stand.
If paid to be paid under protest so that etiher you or the tentn can get the refund without any time limit.
CAclubindia
