Service tax on renting of immovable property

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MANISH KUMAR (Querist)
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03 February 2012 my client has deposited service tax on renting of immovable property alongwith interest thereon after receiving notice from service tax department .After that service tax department has issued a penalty notice for not depositing service tax in due time.tenants of my client was not paying service tax due to matter is under dispute.

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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03 February 2012 You have not mentioned your query. It seems that you want to know whether penalty is payable or not....Although talking legally as per provisions of Finance Act, 1994 it is payable.

But this matter is in great litigation and dispute, further, Supreme Court has also told to pay service tax amount only....There is a strong case in your favour on the ground that constitutional validity of service tax was in challenge and therefore, you should not pay penalty as there was no suppression of facts and even department must be knowing and accepting it..

Arun Gulati

Arun Gulati (Expert)
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04 February 2012 Even, there are judgment of supreme court, penalty is not payable when there is retrospective amendment..and section 80 is also there to rescue you, there is no question of penalty arises.

MANISH KUMAR

MANISH KUMAR (Querist)
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04 February 2012 thanks for advice.kindly tell me about judgment of supreme court.

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