service tax on rent

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CA Sanjeev Kr Jain (Querist)
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20 March 2009 I have properties in Delhi, let out in Feb 09.

Some one says that in view of stay granted by Mumbai high court he is not paying the service tax in Delhi

Pl advise me the correct position and also what is the subejct matter of Mumabi high court suit & decision thereon

K V Subba Rao

K V Subba Rao (Expert)
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20 March 2009 I am not thorough with the subject. Nevertheless as I understand, stay order is applicable to only those who filed WP and not to all Landlords throughout the country

As a precautionery measure, the Landlord may like to collect an amount equivalent to service tax (MUST not be in the name of service tax) and keep it with him (Landlord) duly giving an undertaking to tenant for refunding the same, in due course, if necessary with Interest.

Much depends on negotiating strength of both parties and confidence level

CA JAIMIN TRIVEDI

CA JAIMIN TRIVEDI (Expert)
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20 March 2009 If the rent for Feb and March'09 does not exceed Rs.10 lakhs, then dont think of service tax as you will not be liable.

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