TaxTMI 
TaxTMI 
Filing of Service Tax Return
22 May 2010 
2 Replies 
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Service tax on renting of immovable property remains uncertain; taxpayers should await legal developments before enforcing collection.
Taxpayer registered for service tax in January 2009 but did not file returns or collect tax. Liability for renting immovable property arises only for amounts received after the applicable commencement date; amounts not separately collected may be treated as inclusive and grossed up using the correct rate. Interest under sections 234A, 234B and 234C applies for delayed payment. Because of retrospective amendment and a judicial stay creating uncertainty, it is prudent to await further developments before enforcing collection or retrospective regularisation. (AI Summary)
Taxpayer registered for service tax in January 2009 but did not file returns or collect tax. Liability for renting immovable property arises only for amounts received after the applicable commencement date; amounts not separately collected may be treated as inclusive and grossed up using the correct rate. Interest under sections 234A, 234B and 234C applies for delayed payment. Because of retrospective amendment and a judicial stay creating uncertainty, it is prudent to await further developments before enforcing collection or retrospective regularisation. (AI Summary)
My client has given office building on rental basis since 2006 to various corporate entities. The service tax registration was taken in jan-2009, but till now he has not filed any return. He has not collected any amount by way of service tax. pls guide on the above matter. Thanks Dhiraj R. Tharwani