TaxTMI 
TaxTMI 
Applicability of Service tax on Renting of Immovable property
18 Feb 2010 
4 Replies 
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Renting of immovable property: proposed retrospective amendment makes it subject to service tax despite prior high court ruling.
The Delhi High Court held that service tax is not payable on renting of immovable property and directed that coercive recovery steps and demand letters should not be issued pending Supreme Court review. The exemption threshold for service tax was increased effective April 2008, but the Finance Bill 2010 proposes a retrospective amendment to make renting of immovable property liable to service tax, potentially overruling the High Court position. (AI Summary)
The Delhi High Court held that service tax is not payable on renting of immovable property and directed that coercive recovery steps and demand letters should not be issued pending Supreme Court review. The exemption threshold for service tax was increased effective April 2008, but the Finance Bill 2010 proposes a retrospective amendment to make renting of immovable property liable to service tax, potentially overruling the High Court position. (AI Summary)
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.