Service Tax payment for SERVICE TAX NOT RECEIVED ??

[hardik thacker]

Sir,

OUR ORGANIZATION IS SEMI GOVERNMENT ORGANIZATION (LOCAL AUTHORITY).MOST OF THE LANDS IN TOWN ARE OWNED BY OUR ORGANIZATION AND ALLOTED TO VARIOUS PARTIES FOR LONG TERM OR SHORT TERM

THE CHANG IN THE LEASE RENT RATE HAS BEEN TAKE EFFECT WITH APPROVAL OF 'TAMP' (TARIFF AUTHORITY OF MAJOR PORT) .HOWEVER PARTIES ARE PAYING LEASE RENTAL AS PER LEASE DEED ENTERED LONG BACK.HENCE THE MATTER IS IN LITIGATION.

AT PRESENT OUR ORGANIZATION IS RAISING INVOICE AS PER NEW RATES AND PAY SERVICE ON THAT AS PER THE RULES OF SERVICE TAX.HOWEVER WE ARE NOT RECEIVING EVEN MAIN AMOUNT.

DUE TO ABOVE WE INCURRED HUGE LOSS FOR PAYMENT OF SERVICE FOR WHICH EVEN SERVICE VALUE ITSELF IS NO RECEIVING

IS THERE ANY REMEDY FOR SAVING FROM PAYING SERVICE TAX 'OUT OF POCKET'

THANKS......

AI Summary

Semi-Government Entity Faces Financial Strain Over Lease Rental Service Tax; Considers Expediting Litigation Over Constitutional Challenges. A semi-government organization is facing financial issues due to paying service tax on lease rentals invoiced at new rates approved by the Tariff Authority of Major Port, while not receiving payments from lessees due to ongoing litigation. The organization seeks advice on avoiding paying service tax out of pocket. A respondent suggests two options: challenging the constitutional validity of the Point of Taxation rules or waiting for the litigation to conclude. The recommendation is to prioritize expediting the litigation process to recover the full amount, including service tax and interest, rather than pursuing lengthy constitutional challenges.