Applicability of Service tax on Renting of Immovable property

[chaganti srinivas]

Dear Sirs, Renting of Immovable property - Based on the judgement of Delhi high court, Kindly provide the present status on the applicability of Service tax on the same. If applicable can i take the exemption of Rs. 8 lacks for calculating the service tax amount during a financial year.

[rishi mohan]

Respected sir, the exemption limit in service tax has been exceeded to "ten lakh" from "eight lakh" since 1st April, 2008 as per notification no.8/2008 of Service Tax.In the said notification, for the words "eight lakh rupees", wherever they occur, the words "ten lakh rupees" shall be substituted. In case of renting of immovable property the case is still pending with the supreme court. But as per Delhi high court service tax is further not applicable on renting of immovable property.We shall wait for the decision from the supreme court, but presently renting of immovable property is totally exempted from service tax.

[Vijay Chitte]

There is no any ammendmend in present taxable services. Delhih HC judgement is still pending in the SC. Being safer side, charge the service tax on renting of immovable property, otherwise, in future, if the Supreme court judgment overuled the Delhi HC hudgment, you have to pay serice tax along with applicable interest also. At present exemption limit is 10 lacks.

[MOHAN S]

Dear Friends The Delhi High Court has categorically held that no coercive steps should be taken and no letters demanding Service tax on Renting of Immovable property be issued by the Department as Hon.Supreme Court has not granted stay of the Delhi High Court Judgement on this issue. The learned Additional Solicitor General appearing for the Baord (CBEC), assured that corrective steps shall be taken by issuing further instructions, in supersession of earlier instructions, to the officers not to write such letters demanding the payment of service tax or threatening coercive steps.

[Rama Krishana]

Now, after reading the proposal made through Finance Bill 2010, the renting of immovable property is liable to service tax with retrospective effect and the decision of Delhi High court overruled through the amendment.

AI Summary

Service Tax Debate: Renting Immovable Property Under Scrutiny as Supreme Court Reviews Delhi HC Ruling; Exemption Limit Raised. A discussion on the applicability of service tax on renting immovable property highlights differing views based on recent legal developments. Initially, the Delhi High Court ruled that service tax is not applicable, but the case is pending in the Supreme Court. Participants advise caution, suggesting that service tax be charged to avoid future liabilities if the Supreme Court overturns the Delhi High Court's decision. The exemption limit for service tax has been increased from eight lakh to ten lakh rupees. However, a proposal in the Finance Bill 2010 suggests that renting of immovable property could be retrospectively liable for service tax.