Renting of Immovable property services court case

1036 views 4 replies

Dear Experts,

 

We Property Management Servicers have given our property on rental lease to one retailer company and collecting service tax under newly amended Section 65 (105) (zzzz) under "Renting of Immovable Property Service", Sir we have received a letter from our tenant stating that they have petitioned in Mumbai high court and Delhi Supreme court regarding payment of service tax on rent. If the judgment comes against the retailer company then they are liable to pay service tax with interest and penalty.

 

Sir still we are not receiving the service tax from the above tenant. Sir what is the final judgment of Delhi Supreme court for the above case. Sir we are not paying the service tax which is not collecting from the above tenant.

 

In this situation what we can do……….?

 

Waiting for ur suggestions….

 

Thank you,

 

//PRASAD//   

 

Replies (4)

Please esnure that the tenants views are communicated to the revenue and also takle a indemnity biond from the tenant that in case the decision goes against the tax payer then they will pay the ST along with the interest thereon.

In the meantime the dept may raise a demand. may not be adjudicated till decision of the Delhi HC is recived]  

Dear Madhukar ji....

 

Thanks for ur reply......but some of my colics saying in 2010 budget indirectly mentioned that all retailers should pay the service tax on rent.

Is its right..........?  

Dear Sir,

 

I am facing same problem as Mr. Prasad Stated, so please guide us that our Assesseee is laible for tax & how to mention this in Service tax return. & what action can be taken by service tax department for non- payment of service tax in such condition (sir please note that we are receiving rent in  time to time)

 

Thanks & Regards,

 

Satish_bhamare @ yahoo.co.in

+919769405008

 

 

 


 

Dear Mr. Prasad,

What you have stated is correct the government has made an amendment in the Finance Act of such nature that, they have made the renting a 'DEEMED SERVICE' that is also with retrospective effect and the department has started issuing SCN. But you can always take the view that, since the matter is pending for the final disposal before the High Court/Supreme Court keep the present matter in abeyance till the date;

And as suggested by Hiregange Sir, please take a Indemnity Bond from the Tenant..

Regards,

Adv. Kaustubh Khairnar 

 

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