Applicability of Judgement

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No Service Tax On Renting Premises For Business: Delhi HC The Delhi High Court on Saturday struck down the levy of service tax on renting of immovable property as 'unconstitutional', while disposing of 26 writ petitions filed by different petitioners, by a combined order. Alishan Naqvee, advocate, LexCounsel Law Offices, who represented his clients in two of the petitions, which was disposed of on Saturday, said, 'The category of 'renting of immovable property service' was introduced by the Finance Act of 2007. what are the implications of above judgement whether it is applicable all over india and can all service providers stop charging service tax on rental of immovable property for business purposes pls highlight

AI Summary

Court Rules Service Tax on Renting Business Properties Unconstitutional; Raises Refund, Compliance Questions for Landlords and Tenants The Delhi High Court ruled that the levy of service tax on renting immovable property for business is unconstitutional, affecting 26 writ petitions. This decision raises questions about its nationwide applicability, potential tenant refunds, and whether landlords can seek refunds for taxes paid. Concerns include the possibility of an appeal to the Supreme Court and the lengthy refund process. The interim relief granted by the court allows service providers to avoid paying the tax until a final decision. The ruling highlights transitional issues in tax law, with implications for future compliance and the need for clarity from higher courts.