Lessee is liable to pay Service Tax despite Liability of Lessor: SC

Union Of India & Ors. Vs. Bengal Shrachi Housing Development Limited & Anr. (Supreme Court of India) Government, though in the capacity of a lessor is liable to pay service tax on the rental income as per section 66B of the Finance Act, 1994 despite the fact that the original liability lies on the lessor. The fact that service tax may not, in given circumstances, be passed on by the service provider to the recipient of the service would not, therefore, make such tax any the less a service tax. It is important to bear this in mind, as the main prop of Shri Jaideep Gupta’s argument is ...