Service Tax : Service tax payable on long term lease of Immovable property under Renting of Immovable Property – not in sync with Service tax ...
Service Tax : 1. Definition and Scope of Rent-A-Cab Service 1.1 What is Rent- A-Cab Service? Rent-A-Cab Service means renting of any motor vehic...
Service Tax : Renting has been defined w.e.f. 1.7.2012 in section 65B(41) as allowing, permitting or granting access, entry, occupation, usage o...
Service Tax : For those assesses who are liable to pay service tax on their income from renting on immovable property, the Central Government v...
Service Tax : Renting of Immovable Property is one such tax under the net of Service Tax law. The levy was under controversy since years and eve...
SEBI, Service Tax : Supreme Court on 14.10.2011 modified it’s earlier stay order of 28.9.2011 in the SLP filed by petitioners Retailers Associat...
Service Tax : Bombay High Court has extended the Stay until 30th September 2011, in the famous renting case – Retailers Association of India a...
Service Tax : Bombay High Court, while disposing a batch of writ petitions filed by The Retailers' Association of India along with the Confedera...
Service Tax : When the Court assembled today, Ms. Sonia Sharma, representing UOI, rose to inform the Court that Mr. A.S. Chandiok, ASG, was indi...
Service Tax : The Supreme Court has stayed an order of the Delhi High Court, which stopped the Centre from recovering service tax on renting of ...
Service Tax : In view of various decision of Supreme Court it cannot be accepted that Union of India has no authority or power to levy service t...
Service Tax : Delhi High Court has upheld the constitutional validity of Service Tax on renting of immovable property with retrospective effect ...
Service Tax : Delhi HC Reserves the Judgement in the case related to applicability of of service tax on renting of immovable Property on 20.05....
Service Tax : Supreme Court: Service Tax on Renting of Immovable Property – Requests High Court to hear and dispose of all writ petitions pend...
Service Tax : In this writ petition there is a challenge to section 65(105)(zzzz) of the Finance Act, 1994 inasmuch as it purports to levy servi...
Service Tax : Kind attention is invited to the recent judgement of the Honourable High Court of Delhi in the matter of Home Solutions Retail Ind...
Service tax payable on long term lease of Immovable property under Renting of Immovable Property – not in sync with Service tax Act, Accounting Standard, Bombay Stamp Act & Income Tax Act
1. Definition and Scope of Rent-A-Cab Service 1.1 What is Rent- A-Cab Service? Rent-A-Cab Service means renting of any motor vehicle designed to carry passengers!!! 1.2 What??? I haven’t heard or read such a definition anywhere? Correct, but let me explain – As per Finance Act, 1994 the relevant definitions contained in Section 65 are […]
Renting has been defined w.e.f. 1.7.2012 in section 65B(41) as allowing, permitting or granting access, entry, occupation, usage or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property’.
For those assesses who are liable to pay service tax on their income from renting on immovable property, the Central Government vide Notification No. 29/2012-ST, dated 20th June, 2012 and w.e.f. 1st day of July, 2012 has exempted the taxable service of renting of an immovable property, from so much of the service tax leviable thereon under section 66B of the said Finance Act, as is in excess of the service tax calculated on a value which is equivalent to the gross amount charged for renting of such immovable property less taxes on such property, namely property tax levied and collected by local bodies:
Renting of Immovable Property is one such tax under the net of Service Tax law. The levy was under controversy since years and eventually turned off as deemed levy and adding more pain levied from retrospective date. However for rehabilitation of service tax law in this regard the Section 80(2) was introduced in budget 2012-13.
If you have put your immovable property on rent for use in furtherance of business or commerce and annual rent amount, alone or with the amount of other taxable services, exceeds Rs. 10 lacs and further, you have any service tax amount related to such renting due since 1st June, 2007, you have an opportunity to pay such due with interest before 27th November, 2012 and department would not ask for penalty.
Renting of Immovable property service is one among the services which has huge implication as to the coverage of number of assessees and the quantum of revenue collection. The levy came in to effect from 01-06-2007. Since renting is not a service in common parlance coupled with power to levy taxes on immovable properties is under state list, this levy created lot of ambiguity and required extensive judicial examination. All these have left behind the landlords and tenants under a puzzled situation as to compliance of the same. Therefore this article aims at giving an insight as to the development of the judicial decisions and the statutory amendments and the possible measures to be taken to obtain relief and to avoid litigation.
In view of various decision of Supreme Court it cannot be accepted that Union of India has no authority or power to levy service tax on renting of immovable property. The imposition of service tax on renting of immovable property was within the legislative competence of the Parliament and it does not fall within the legislative competence of the State under entry 49 of List II of the Seventh Schedule to the Constitution.
Recent Budget has introduced a Section 80A for waiver of penalty subject to following conditions – Service tax due on renting of immovable property service is paid within a period of six month along with interest. The amount of service tax due will be as on 6.3.2012.
Supreme Court on 14.10.2011 modified it’s earlier stay order of 28.9.2011 in the SLP filed by petitioners Retailers Association of India v. UOI against the Bombay High Court order that had upheld renting as a service with retrospective effect.Petitioners are now required to pay half of their liabilities in the next six months in three […]
