Applicability of service on rent - unregistered

[chaganti srinivas]

Dear Sirs, Rent collected but not paid Service tax. Later date, registered with Service tax and started paying the Service tax. Is it required to pay service tax even if it is not registered with dept?.

AI Summary

Service Tax on Rent: Liability Exists Pre-Registration, Challenges Possible Under Section 73 for Excessive Demands. A query was raised about the obligation to pay service tax on rent collected before registering with the service tax department. The response indicated that while the Supreme Court was still deliberating on the matter, the Delhi High Court ruled that service tax on renting was not applicable. However, it was emphasized that statutory liability to pay service tax cannot be avoided due to non-registration. If service tax is due for the period before registration, it must be paid, but challenges can be made under Section 73 if the demand exceeds the one-year limitation period.