Service tax on rented commercial premises

[Jignesh Shah]

Is Servict Tax to be collected and paid on rented commercial premises as of now? There still seems to be some confusion in tax-payers' mind. Please give clarity.

AI Summary

Service tax on renting of commercial property: proposed retrospective levy pending enactment; taxpayers advised to await legislative assent.
The Delhi High Court had quashed service tax on renting of commercial property and the Supreme Court refused stay, leading the Board to instruct officers not to issue demand or coercive notices; a Budget proposal would make renting taxable retrospectively but commentators advise that the levy is operative only after the Finance Bill is enacted, creating divergence between immediate compliance and awaiting legislative assent, with limitation-period considerations and forthcoming departmental instructions affecting taxpayer risk.