TaxTMI 
TaxTMI 
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
Applicability of Judgement
20 Apr 2009 
4 Replies 
1522 Views Asked by
Service tax on renting immovable property declared unconstitutional, creating uncertainty on collection, refunds and nationwide applicability.
The levy of service tax on the renting of immovable property service was held unconstitutional and petitioners received interim protection from payment pending final adjudication. The decision prompts practical questions on liability and refunds-whether tenants must pay, whether landlords who collected and paid must refund tenants, and whether landlords who paid from their own funds may seek reimbursement-while also creating uncertainty about nationwide applicability and the revenue's potential appeal. (AI Summary)
The levy of service tax on the renting of immovable property service was held unconstitutional and petitioners received interim protection from payment pending final adjudication. The decision prompts practical questions on liability and refunds-whether tenants must pay, whether landlords who collected and paid must refund tenants, and whether landlords who paid from their own funds may seek reimbursement-while also creating uncertainty about nationwide applicability and the revenue's potential appeal. (AI Summary)