Service tax on Renting of Immovable Property

This query is : Resolved

CA Suresh Choudhary (Querist)
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05 August 2010 As per Delhi High Court rent on Immovable property held unconstitutional so we can not collect the Service tax from the tenant.
Later on in the Finance Bill the definition of Renting is amended and Immovable property renting is included in the Service tax net retrospectively from 1.6.2007.
So as of Now what is the status on Renting of Immovable Property as far as Service Tax is concerned?
Do we have to collect the Service and pay to the Government?

Can any body guide me on this matter.
Thanks in Advance

CA Shishir

CA Shishir (Expert)
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05 August 2010 Yes service tax is to be collected from the tenants on House Property rents received. The same it to be remitted to the Government

CA Sanat Pyne

CA Sanat Pyne (Expert)
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05 August 2010 agreed

VINOD ARORA

VINOD ARORA (Expert)
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05 August 2010 Yes, to avoid unnecessary complications, service tax should be collected and deposited in due course as per law. The lessee has to honour the law. ALso, he may easily avail input credit of the amount of service tax so paid against output service tax liability of tenant, if any.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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05 August 2010 The amended provisions is also challenged and now the matter is under sub judice of Supreme court.

CA Suresh Choudhary

CA Suresh Choudhary (Querist)
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16 December 2010 What is the update in this Matter

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 December 2010 Paper reports says supreme court is expected to take up the case in this month.

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Service tax on Renting of Immovable Property

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