Service Tax on Rent on commercial property

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This obnoxious decision to levy service tax on rent of commercial buildings has not been resolved yet. Could any member throw light as to what is the position as of now and any way that this can be avoided or challenged.

Replies (2)
The matter has been referred to Madras and Bombay High Court.

Till the decison is taken by SC, its better to collect the STax and pay it to Govt.

Still if you want to go for litigation , one may take a stand on power of CG to tax immovable (as the power rest with State Govt as this particular item falls under the entry no. 49 or 18 of List II of Schedule VII to the Constitution of India)
The decesion is still pending. But in practice, same have been taxable. i advise to you charge service tax on rent and pay to government.


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