INTERIM RELIEF TO RETAILERS FROM SERVICE TAX ON RENT
Bringing some cheer to modern retailers in an otherwise troubled market, the Bombay High Court granted interim relief from payment of service tax on the rents of immovable property. Retailers will not have to pay service tax till the final order in this regard is issued by the Supreme Court (SC). The
petitioners will have to file a written undertaking stating that in the event the challenges against such tax was disallowed, they will pay the amount due in accordance with the statutory provisions, the court observed. The Retailers Association of India had filed a writ petition challenging the levy of service tax on property as unconstitutional. The matter came up for hearing in the Bombay High Court on July 30, 2008. The provision to levy 12% service tax on commercial rentals came into force on June 1, 2007 as part of the 2007-08 Budged.
petitioners will have to file a written undertaking stating that in the event the challenges against such tax was disallowed, they will pay the amount due in accordance with the statutory provisions, the court observed. The Retailers Association of India had filed a writ petition challenging the levy of service tax on property as unconstitutional. The matter came up for hearing in the Bombay High Court on July 30, 2008. The provision to levy 12% service tax on commercial rentals came into force on June 1, 2007 as part of the 2007-08 Budged.
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