2016 (1) TMI 1173

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... has reversed the decision of the lower authority to the extent of ordering recovery of Rs. 8,85,885/-being the tax payable by the appellant under section 65 (105) (zzzz) as provider of renting of immovable property service. 2. The appellant is the owner of building towers which are liable to property tax levied and collected by the Pune Municipal Corporation. It would appear that the appellant had constructed an internal road on build operate and transfer basis rendering the appellant eligible for setting off the cost incurred in such construction of the internal road towards 75% of the tax due for each assessment period from 1st April 2004 to 31st March 2009. Combining both the payment of property tax and set-off, the appellant claimed....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tisfied that it is necessary in the public interest so to do, hereby exempts the taxable service of renting of immovable property, referred to in sub-clause (zzzz) of clause (105) of section 65 of the Finance Act, from so much of the service tax leviable thereon as is in excess of the service tax calculated on a value which is equivalent to the gross amount charged for renting of such immovable property less taxes on such property, namely property tax levied and collected by local bodies: Provided that any amount such as interest, penalty paid to the local authority by the service provider on account of delayed payment of property tax or any other reasons shall not be treated as property tax for the purposes of deduction from the g....