Service tax applicability on rent

[ASHOK CHOUDHARY]

Is service tax on rent is payable on the property situated in Mumbai. The location of the premises is also important for the service tax on the rent payable to govt.

AI Summary

Service Tax on Property Rent Found Invalid Nationwide Following Delhi High Court Decision Under Finance Act 1994. A query was raised regarding the applicability of service tax on rent for property in Mumbai. Two respondents agreed that the Delhi High Court's decision, which deemed the service tax on renting of immovable property as not applicable, is valid across India. They explained that the court set aside a notification under the Finance Act 1994, rendering the levy invalid nationwide. This ruling differs from typical jurisdictional limitations of high court decisions because it pertains to a notification intended for all of India, thus affecting the entire country when nullified.