Hi all
My query is as under :-
Mr. A has two tenants in a commercial building in Chandigarh, T1 & T2.
The total rent amount being derived by A from these is more than 10 lacs and he has taken the registration under service tax.
Mr. A raised the bill to T1 & T2 (Rent amount + service tax) and the same was duly paid by T1 & T2 and the service tax due was accordingly deposited by Mr. A with the revenue.
But the tenant T1 stopped the payment of service tax w.e.f. september 2008, by giving reference to the judgement of the Hon'ble bombay high court in the case of
Retailers Asso. Of India (RAI) vs. Union Of India
NOTICE OF MOTION NO.173 OF 2008
IN
WRIT PETITION NO.1263 OF 2008
Here, T1 is member of RAI and a company incorporated in Mumbai. Since T1 didnot pay the service tax , Mr. A also didnot deposit anything on account of this since nothing was recieved by him.
The tenant T2 continued with the payment of service tax and the same was duly deposited by Mr. A with the revenue.
Here, the revenue is insisting on deposit of service tax on rent recieved from tenent T1.
Now, the question is :-
1)Is the judgement of Hon'ble Bombay High Court applicable to the property in Chandigarh taken on rent by T1.??
2) Is Mr. A required to deposit any service tax on rent recieved from tenant T1 ??
Please advise on the matter.
Attached File : 31 judgement.pdf downloaded: 197 times