Service Tax on Rent on commercial Property

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MANOJ KUMAR KUNDU

ACCOUNTS MANAGER

22 Points Posted on 22 January 2010

Hi.. Can anyone pls tell me whether we should collect service tax from our Tenant ( all are commercial ) now as Delhi High court had given its judgement in favour of Assesssee. Is there any appeal by Govt of India in Supreme court against this Judgement ? Or Is there any notification from the Dept for exemption of this category from the levy ?

If Service Tax is not to be collected , then Can we claim the Refund for this FY 200-10 ?

NEED YOUR VALUABLE SUGGESTIONS/ADVICE ?

Replies (2)

Aditya Maheshwari

CA in Practice

31210 Points Posted on 22 January 2010

The service tax department has filed an appeal against the order of the delhi high court.

Also currently almost everyone is charging service on rent as if they do not charge and if the assessee losses the case in the supreme court the ST department will levy both interest and default on the persons who did not collect the same. And if in the supreme court the assessee wins then the department will have to come out with a notification regarding refund of the same.

Madhukar N Hiregange

Chartered Accountant

33545 Points Posted on 22 January 2010

Since the balance of conveyance is in favour of the landlord, it maybe preferable not to pay ( take a calculated risk) If payment forced the same maybe made under protest. Ideally file a refund claim now itslef to save limitation.