Service Tax on Rental Properties

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RAJESH CHOUDHARY (Querist)
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20 April 2009 Dear Sir,
I heard some where in the TV News Channel that Supreme court/ High Court has directed that no service tax is livable on rental properties income.
Please tell me what the status is exactly.

Regards,
Rajesh

C A GROUP COACHING

C A GROUP COACHING (Expert)
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20 April 2009 Yes Yur information is correct. Delhi High court has given this verdict on 18th April 2009, & levy of service tax on Rentals have been verdicted as Unconstitutional By the Hon Delhi High Court. So No service Tax on Rentals

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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20 April 2009 Now that the ST on rental as per the DHC has been decided what should the tax payer do is the question?
Whether they should stop paying as the Revenue is sure to go in appeal to the SC.

It is certain now that the vast majority would stop paying the ST and those who have paid would claim the refund as long as they have not collected from the tenants. Tenats who have paid also would apply for refund. Huge amountof litigation- time and effort wasted of Goivt and tax payer to no avail.

The attitude of taxing anything and everything due to the need to augment the huge Govt. Cost of running causes so much misery .
No doubt that India has been rated as having the most miserable tax laws in the world.

Dayal

Dayal (Expert)
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23 April 2009 Recent Delhi High Court judgment held that no service tax is chargeable on services of leasing, licensing of the premises on rent.

In view of the said Judgment, no service tax would be payable on the rent received by owner of immovable property.

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