TaxTMI 
TaxTMI 
TaxTMI 
Service Tax on Rent
PONNADA B K RAVIKUMAR
Whether we have to pay service tax on rent, as one delhi court decision came , not to charge service tax in 2009, in the current budget FM annouced with retrospective effect we have to charge service tax , how to proceed this issue, as we are having one branch in newdelh ,so the owner now he is claiming service tax from april'10 onwards, can you suggest this issue pls
Confusion Over Retroactive Service Tax on Rent Post-2009 Court Decision; Landlords Demand Payment from April 2010. A query was raised regarding the obligation to pay service tax on rent following a Delhi court decision in 2009 that exempted such charges, despite a recent budget announcement mandating it retroactively. The individual sought advice as their landlord demanded service tax from April 2010. One respondent noted that the High Court's stay was conditional and suggested relying on it, although the final decision was uncertain. They advised that no demand would likely be confirmed beyond the one-year limitation period from the show cause notice receipt, even if the decision favored the tax authorities. (AI Summary)