JUDGEMENT ON RENTAL/COMMERCIAL INCOME ????// IMP.

HI ALL

PLZ GIVE ME THE JUDGEMENT / STAY ORDER  given by MADRS HIGH COURT on LEVY OF SERVICE TAX ON COMMERCIAL RENTAL PROPERTY

CLIP ON NEWS IS ATTACHED FOR YOURS KIND VERIFICATION. PLZ GIV ME THE CITATION OR JUDGEMENT OF THIS.

Tax relief for retailers on the anvil?

2007-10-27 14:13:24 Source : moneycontrol

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The Madras High Court has granted an interim injunction to a restaurant that had filed a writ petition, challenging the Finance Ministry's decision to charge service tax on rent, reports CNBC-TV18.

The Madras High Court is hearing a case that could have big implications on the rental of office space. General Star Kitchen, a Chennai-based restaurant chain, has got an interim injunction limiting the Finance Ministry from collecting service tax on the rent of commercial property. The Union government, in this year's budget, had levied a 12.36 % service tax on the gross rent of commercial spaces. Many retailers saw this additional cost eating into their profits. General Kitchen's writ petition has challenged this order, stating that it is only the state government that has the power to levy tax on land and buildings.

“The petitioner is contending that the union government has no power to levy service tax on commercial buildings. This is the subject that only state governments have exclusive powers on. The second point on which we are challenging is that it is not a service at all,” said Sreenath Sreedevan, Advocate, General Star Kitchen.

And there are also two similar cases filed by retailers, which are pending before the Bombay High Court.

The General Star Kitchen case is being very closely followed by the Indian retail and real-estate industries. They say the interim judgement gives them hope, that there is a legitimate case, against the levy of service tax on rentals, which is something the industry has been widely hoping for.

THX ND WARM REGARDS

SACHIN SHARMA