Retailers, real estate cos. challenge levy of service tax

NEW DELHI: Retailers, real estate developers and multiplex owners among
others have moved the Bombay High Court challenging the levy of service tax
on rental income from commercial properties.

Pantaloon Retail, Trent, Aditya Birla Retail, Archies, CISCO systems India,
Citibank NA, DLF Universal, IBM India, ITC, McDonalds India, Reliance
Petromarketing, Reliance Webstore, Bombay Dyeing, Titan Industries, Unilever
India Exports, Adlabs Films and the Bijli Group are among the companies
which have sought relief contending that lease or licence (including renting
or letting out) was not a service.

According to Tarun Gulati, advocate close to the matter, said a bench headed
by Justice F I Rebello had admitted the petition filed by the Retailers
Association of India, the Confederation of Real Estate Developers'
Association of India and the Multiplex Association of India.

The court also observed that any payment of service tax should be subject to
the final outcome of the petition.

The matter is listed for final hearing on September 17, 2007.

While making the ministries of finance, law, justice and company affairs and
the Central Board of Excise and Customs and the Director General of Service
Tax as respondents, the petitioners challenged the constitutional validity
of the provision to levy service tax on renting of immovable property from
June 1. — PTI
Link :http://www.hindu.com/2007/07/10/stories/2007071055011800.htm

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