service tax payable on rental of immovable property



Querist : Anonymous (Querist)
22 June 2010
is service tax payable on rental of immovable property..?
any supported caselaws / notification applicable for nonpayment of such ST ?


CA CS CIMA* Prakash Somani (Expert)
22 June 2010
Yes, TDS, under sections 194-I of the Income Tax Act, would be required to be made on the amount of rent paid without including the service tax, it further added. TDS is deducted on rentals which are over Rs 12,000 per month at the rate of 20% for companies and 10% for individuals.

B.Chackrapani Warrier (Expert)
22 June 2010
Renting of immovable property has been made as "service" with retrospective effect by the Finance Act,2010. But the Delhi and Andhra Pradesh High courts had given a stay against the levy. The matter is,hence ,under sub judice.

Cases:-
1) Home solutions Retail India Ltd - Delhi High court.
2) Trent Ltd Vs Union of India - Andhra Pradesh High Court.


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