Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: VAT Audit :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: ACCOUNTING STANDARD :: TDS :: form 3cd :: VAT RATES :: ACCOUNTING STANDARDS :: empanelment :: due date for vat payment
 
 
« News Headlines »
 Seven things you must do before 31st March
 Income Tax saving investments: Top 5 options available for high-income individuals
 How to use zero tax rule on long term capital gains on stocks
 GST Returns - Furnishing details of inward supplies
 5 ways to maximise you income tax return
 Income-tax (2nd Amendment) Rules, 2017
 Soon, Faster PAN, An App For Filing Tax Returns
 Changes in income tax return filing process
 New Income Tax Rates And Deductions Applicable From April 1, 2017
 Tax and transparencya
 No decision yet on imposing tax on cash transactions

Injunction against service tax on rent of commercial buildings
October, 16th 2007
The Madras High Court has granted an interim injunction restraining the Union Finance Ministry from collecting service tax on rent of commercial buildings following a petition filed by General Star Kitchen Pvt Ltd, which operates a restaurant in Chennai Citi Centre.

In the order dated October 9, the court has granted two weeks injunction. The case has been posted for hearing on October 22.

The order has evoked the interest of developers and landlords who have been affected by the Union budget levying 12 per cent service tax on rent or lease of commercial space. Those particularly affected are the owners who have leased space to retailers and information technology companies, say real estate developers.

While the manufacturing sector is able to treat the tax as input credit and pass it on, the retailers and other service providers find the new tax eating into their margins, they say.

The petitioner has challenged the levy of service tax on the grounds that the Union Government has no power to levy any tax on rentals accruing from building in the form of service tax or otherwise. Such a levy is a tax on rent, which in turn is a tax on property. Under the Constitution, only the State Government has the exclusive power to levy tax on land and building.

The petitioner has also submitted that there is no service involved in letting out immovable properties. The Union Government is attempting to levy a tax on service, which it is not entitled to under the federal framework of the Constitution.

The petitioner has also argued that the Government has drawn a distinction between letting properties to business or commerce, on which the service tax is levied, and other leases. There is no distinction between the landlord who lets out property for a commercial purpose or otherwise. So, the distinction is hostile and discriminatory and violates the fundamental right of equality under law.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
System Testing Solution Manual Software Testing Solutions Automation Software Testing Solutions System Workflow Testing System Manual Testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions