Builders, Retailers Move Against Levy of Service Tax

July 10, 2007	(1 votes, average: 1 out of 5)  Loading ...
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Property developers and retailers have challenged the government’s decision to impose service tax of 12.36 per cent, including 3 per cent education cess on rental income from commercial properties.

Developers have filed petitions. The court has observed that any payment made as service tax should be subject to the final result of the petition.

Several prominent brands such as Pantaloon Retail, Archies, CISCO Systems India, DLF Universal, Reliance Petromarketing, IBM India, McDonalds India, Unilever India Exports, Titan Industries, Citibank NA, Reliance Webstore, Bombay Dyeing have already free themselves from the obligation of the same by contending that lease or licence (including letting or renting) is not a service.

Petitions filed by The Retailers Association of India, the Confederation of Real Estate Developers’ Association of India and the Multiplex Association of India have been admitted by a bench headed by Justice F 1 Rebello, informs Tarun Gulati, advocate close to the proceedings.

The final hearing of the court has been scheduled for 17 September 2007.

The Ministries of finance, law, justice, and company affair and the Central Board of Excise and Customs and the Director General of Service Tax have been made the respondents. The petitioners have challenged the constitutional validity of the provision to levy service tax on rents from immovable properties.

News Published Under:   Real Estate India |