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...
TRENT Ltd and Future Value Retail Ltd have challenged before the AP High Court, the service tax with retrospective effect on renting of immovable property, brought in by the Finance Act, 2010.
Four retailers will be approaching various High Courts across the country to seek a stay order on the service tax on commercial rentals that was imposed in this year’s Budget by finance minister Pranab Mukherjee. According to industry sources, the four retailers are Shopper’s Stop, Lifestyle, More and Reliance Retail Ltd.
Through Finance Act 2010, the government had sought to levy service tax on renting of immovable property to businesses, despite the fact a similar law enacted three years ago remained non-enforceable, thanks to a Delhi High Court ruling on a petition challenging the law filed by major retailers.
Delhi High Court has again granted stay to Home Solution Retail (I) Ltd. in W.P. (C) No. 3398 of 2010 on 18.05.2010 from payment of service tax on renting of immovable property. The stay is not on services in relation to renting but on renting per se.
In this Budget a retrospective amendment has been introduced in respect of the service of renting out of property for commercial purposes. Amendment has been made in the definition of “Renting of immovable property service” to provide explicitly that the activity of renting itself is a renting service. The change has given retrospective effect from June 1, 2007. This treatise seeks to explain the rationale and the background for the retrospective amendment for a proper appreciation of this action in the Budget.
This Note sets out some of the issues (identified during at the preliminary stage of discussion on 26 and 27 February, 2010) that are likely to arise in application of the amendments proposed by Finance Bill, 2010 relating to Service Tax. 1. Section 65(19a) – Definition of “business entity”. The definition is an inclusive one and excludes an “individual”. The issue that arises is whether an individual includes “proprietary concern”?
Finance Bill 2010 has made an amendment in the definition of the taxable service ‘Renting of immovable property’ [section 65 (105) (zzzz)] to provide explicitly that the activity of ‘renting’ itself is a taxable service. This change is being given retrospective effect from 01.06.2007.
Kind attention is invited to the recent judgement of the Honourable High Court of Delhi in the matter of Home Solutions Retail India Ltd and Others Vs Union of India [2009] 20 STT 129 (Delhi) , wherein it is held (Para 36 of the order) that, “Section 65(105)(zzzz) does not in terms entail that the renting out of immovable property for use in the course of furtherance of business of commerce would by itself constitute a taxable service and be exigible to service tax….”
The Division Bench of the Delhi High Court comprising of Justice Badar Durrez Ahmed and Justice Rajiv Shikader gave a milestone judgment on 18th April, 2009, in the case of Home Solution Retail India Ltd and Others Vs. UOI and Others (2009-TIOL-196-HC-DEL-ST). The issue involved in this case related, to a batch of Writ Petitions challenging the legality, validity and vires of Notification No.24/2007 dated 22.05.2007 and Circular No.90/1/2008 dated 04.01.2008, issued by the Secretary, Ministry of Finance, Department of Revenue, Government of India.
