Service Tax on Commercial Rent

Yes Sir,

ST has to be levied...

New budget has overruled the decision taken by Delhi HC in Home Solution Retail India and Ors Vs UOI (2009), and renting of immoveble property istelf constituts a taxable service..

Applicable with retrospective effect from 01.04.2007.

The basic exemption limit available is Rs. 10,00,000/- Thereafter an assessee would have to pay service tax. It doesnt make any difference whether the assessee is an individual or company.

The basic exemption limit if Rs.10,00,000/-  is available for every one (including individuals) on which no service tax is payable.   This limit includes all services provided, not only renting.   So if you provide any other service, the amount received from such service should also be accounted and service tax is payable if it exceeds Rs.10 lakhs.

hello dear all, " Service tax on renting of Immovable Property Circular issued by Central Board of Excise and customs ("CBEC") for collection of service tax arrears.

CBEC has, vide circular F.No.276/282/2010-CX.8A dated Feburary 24, 2011, instructed its field officers to take necessary steps for collection of pending servicetax on account of renting of immovable property services. It may be recalled that the Supreme Court had on January 10, 2011 passed an interim order staying the Delhi High Court interim order (dated May 18th,2010) which granted stay to the levy of service tax on renting of immovable property services. The Supreme Court has on Febuary 4 2011 remanded teh matter back to the Delhi High Court for speedy disposal of all writ petitions filed on this matter, and has ordered that its interim order of January 10, 2011 would continue to operate till the disposal of the writ petitions in the High Court.

     Relying on the above interim order of the Supreme Court, the circular states that the interim order, dated May 18,2010 passed by the Delhi High Court (post amendments), staying the levy of service tax on renting of immovable property has been nullified. it is also clarified that puruant to the Order of Supreme Court, theUnion of India is now legally empowered to collect service tax on commercial properties until the final  decision of the Delhi High Court is passed. 

      Accordingly, the field officers are instructed to take necessary action for filling of application for vacation of interim directions issued in favour of petioners by various High courts.