TaxTMI 
TaxTMI 
Service Tax on Rent
03 Jul 2010 
2 Replies 
1386 Views Asked by
Service tax on rent: retrospective amendment creates exposure, with party specific stay and one year limitation from show cause notice.
Whether service tax applies to rent after a retrospective budgetary amendment is contested; a High Court stay is conditional and binding only on petition parties, so third parties remain exposed. Reliance on the stay may be practical for those parties, but retrospective amendments can create exposure, and confirmed demands are typically limited by a one year limitation period from receipt of the show cause notice. (AI Summary)
Whether service tax applies to rent after a retrospective budgetary amendment is contested; a High Court stay is conditional and binding only on petition parties, so third parties remain exposed. Reliance on the stay may be practical for those parties, but retrospective amendments can create exposure, and confirmed demands are typically limited by a one year limitation period from receipt of the show cause notice. (AI Summary)
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