Change in Budget on 'Renting act' restrospectively - Interest and peanlty on rent not paid earlier

[chaganti srinivas]

Dear Sir, Since there is a change in the Budget on 'Renting act' restrospectively from 1st june'2007 making 'Rent itself is a taxable service' now, Do we need to pay Interest and penalty on the rent whichever is not paid earlier.

AI Summary

Renting Act Update: Rent Classified as Taxable Service Since 2007; Interest Mandatory, Penalties Conditional Under Finance Bill 2010. A discussion on a forum addresses the retrospective change in the budget regarding the 'Renting Act,' which now classifies rent as a taxable service from June 1, 2007. The query concerns whether interest and penalties apply to previously unpaid rent. One reply confirms that both interest and penalties are applicable under the Finance Bill 2010. Another response clarifies that while interest is mandatory, penalties are not imposed if the service tax is paid before a show cause notice is issued. A third participant agrees, adding that the tax will only be levied retrospectively once the bill is enacted.