Renting of Immovable property

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This query is : Resolved

Swapnil (Querist)

16 August 2010 Renting of immovable property itself is made taxable with retrospective effect from 01.06.2007 through the Finance Act, 2010. Hence, whether interest is to be paid on the amount of service tax payable for the period preceding the amendment. As during the period preceding the amendment, it was not known that the said service is taxable and as such there is no default on the part of assessee.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)

16 August 2010 even after the provisions of Finance Act, 2010, the status is still unclear:

Please refer to the delhi high court stay order : WP(C)3398/2010 # Home Solutions Retails Ltd Vs UOI.

Till the matter is fully decided, nothing can be said with surety.

Swapnil

Swapnil (Querist)

16 August 2010 But they have made an amendment to the Act itself. So can the SC still give the decision that renting is not service?

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)

16 August 2010 yes.. they can as you can understand from the fact that the stay order have been issued on 18/5/10 (after the budget,2010)

see the basic contention is the very fact that "Renting an immovable property can not construed as rendering of a service" & the whole case is being fought on this very definition. So, just wait till the final say of the judiciary is over.

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