Service Tax on Property Deals: HC Affirms Industrial Company Acted as ‘Real Estate Agent’ Through Quick ‘Flip’ Transactions

Chhattisgarh Steel Castings (P) Ltd. Vs Union of India (Chhattisgarh High Court) Service Tax Liability Upheld on ‘Other Income’ from Property Sales: Chhattisgarh HC Rules on Real Estate Agent Status: The High Court confirmed service tax liability and penalty on a company for receiving income from quick property flips, ruling that the transaction structure (agreement to purchase and direct sale to third party) qualified the company as a “Real Estate Agent,” not a simple buyer/seller. The Court held the extended limitation period was applicable due to suppression of the t...