Retrospective service tax on renting of immovable property remains stayed in pending challenges, advise landlords not to collect past tax.
The levy of service tax on the renting of immovable property is disputed: a high court held pure renting outside the Finance Act's scope while the Finance Act 2010 retrospectively expanded the definition to include commercial renting and related services; subsequent writs have secured interim stays on recovery, so landlords should refrain from collecting past-period service tax or obtain specific stay orders. (AI Summary)

Unit level deduction under Section 10A: losses of non eligible units cannot offset eligible unit export profits for deduction.
A unit level deduction for profits from export activities is available only to undertakings meeting specified commencement, non reconstruction, plant use and foreign exchange repatriation conditions and certification requirements. The deduction operates at the undertaking level so eligible unit income is treated separately, and losses of non eligible units may not be set off against profits of eligible units when computing the unit level deduction. (AI Summary)

Input service distributor registration enables manufacturers to claim CENVAT credit for sales-office rent and security services.
Sales offices receiving invoices for rent and security agency services qualify as input service distributors; they must register, file half-yearly returns, and distribute credits in accordance with Rules 7 and 9(1) of the CENVAT Credit Rules read with Rule 4A(2) of the Service Tax Rules. The distributor's invoice under Rule 9(1)(g) is valid for the manufacturer to claim CENVAT credit, and those taxable services are eligible as input services for CENVAT credit, subject to procedural compliance and the general restrictions on distribution. (AI Summary)

Limitation period for refund claims: time-bar not applicable where tax was not leviable, enabling refunds despite delay.
Refund claims for excise duty and interest must be filed within the statutory limitation period from the relevant date with evidence that the duty was paid and not passed on; the limitation does not apply where duty was paid under protest. Crucially, if an amount paid is not a leviable duty (for example, tax paid on services not subject to tax), the time bar is inapplicable and refund may be granted where there is no unjust enrichment. (AI Summary)

Residuary deduction under Section 37 requires expenses to be wholly and exclusively for business and non capital in nature.
Residuary deduction under Section 37 requires that an expenditure not fall under sections 30-36, not be capital in nature, be incurred in the previous year, relate to business carried on by the assessee, and be expended wholly and exclusively for that business; expenditures for illegal or prohibited purposes are excluded. The decisive classification question is whether an outlay is capital-acquiring or improving long term assets and capitalised-or revenue-routine, recurring business expenses charged to profit and loss. (AI Summary)