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service tax applicable f. y.

shailendra (Accounts Executive ) (128 Points)

21 April 2010

Sorry,my earlier question was not clear. So, I want to clarify my query:-

Is service tax applicable on rent on immovable property for the f.y.2009-10. There was a circular issued by SERVICE TAX DEPARTMENT in April,2009 about in this concern but I am not sure about the exact date of that circular and the date from which service tax is applicable or not on immovable property?

Please clear it.

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4 Replies

CA Sanjay Jha (ACCOUNTS MANAGER) (914 Points)
Replied 21 April 2010

yes

Service tax applicable from F,Y. 1994-95

P.Bashista (Advocate) (367 Points)
Replied 21 April 2010

Yes service tax is leviable on rental income from immovable property used for commercial purposes.

It became applicable from 2007. There was a high Court judgment which stayed the payment of service tax on this kind of income.

But in the current budget it has been made clear that you have to pay service tax on this income and that too with retrospective effect. That means from 2007 till date and now that High Court judgment has no validity.

Though this matter is still pending before the Supreme Court.

CA Sanjay Jha (ACCOUNTS MANAGER) (914 Points)
Replied 21 April 2010

Dear Mr Bashista

Can u confirm me that serviced tax on Renting of immovable property ammendment restropactive effect.

P.Bashista (Advocate) (367 Points)
Replied 21 April 2010

Sir,

This service falls under taxable sevice No. 96 and it was levied vide notification No. 23/2007 dated 22.05.2007.

If you see the Service tax tariff 2010-11 it is clearly written that vide finance bill 2010 it is applicable with retrospective effect from 01.06.2007.