As per AP High Court Judgement, Service Tax on renting on immovable property is levied prospevtively, whereas Central Govt. levies it retrospectively,
Now what to be done in case where person has rented its property from 2008-2010 without depositing the Service Tax, whether it is to be deposited with retro effect or prospectively.
Support with latest judgement and case laws.
The Delhi HC had also come to a conclusion that the entry is unconstitutional. However in the P&H HC decision Stumb Styeel, the court held that the entry was valid retrosepctively. Subsequently the SC stayed the operation of Delhi decision. As of now liability after July 2010 is clear and it is advisable to pay the same until any contrary decision comes from the SC. If required the same can be paid under protest to gaurd against the 1 year limitation for refund.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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