service tax on " rental of immovable property services'

This query is : Resolved

Rajesh A M.com,MBA,ACS,LLB (Querist)
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08 April 2009 Dear friends,

a lessor got regn under ST on 24.03.09 for " rental of immovable property services'and claiming ST from 01.04.2008 ( i.e from FY begining onwards ).
query is;
1.Is it correct charging ST with retrospective effect?
2.Will ST applicalbe on the full value of rent paid?
3.Is ST applicable on arrears of rent also?
4.The property belongs to HUF and rent paid to individual co parceners by separate cheques after TDS.But only one co parcener charging ST out of his share of rent.Is it correct or we have to pay voluntarily to all the owners?

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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15 April 2009 The renting of IP is a subject matter of dispute which is to be resolved in the coming years.
It is preferable topay the same under protest by the landlord.

ST is payable on the gross amount less municipal taxes paid.

Assuming that the same is a taxable service the arrears would also be liable from 1.6.2007 onwards.
If property jointly held by different people and only one of the joint owners is liable ( more than limit) then only one of them can charge the ST. However whether HUF can be broken up into tis co parceners is an issue which requires good knoweldge of IT as well as ST which I am unable to address.

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