TREAT HOUSING AS INFRASTRUCTURE - CREDAI-NCR : TREAT HOUSING AS INFRASTRUCTURE The Times Of India NAREDCO has made a number of recommendations — with a view to accelerate housing development — to the finance and the urban development ministries for inclusion in the forthcoming Budget. PRABHAKAR SINHA writes The real estate industry in India has emerged as one of the most vibrant sectors in the country, providing jobs to millions. The sector plays an important role not only in providing shelter to people, but also in rapid urbanization, which is a key to speeding up economic growth in the country. But the sector, in the last couple of years, was not given its due in the Union Budget. Real estate developers associations have prepared a number of wish lists to achieve a higher growth in the sector. The National Real Estate Development Council (NAREDCO) made a number of recommendations in this regard to the ministry of finance and the ministry of housing and urban poverty alleviati...

Gurgaon plans big for 2025 - CREDAI-NCR : 10th February, 2012 Source: The Economic Times Cyber city Gurgaon was developed as one of the prime locations for real estate and industrial activity in the NCR. While the residential and the commercial development are there for all to see, the industrial development is not far too behind. In the last ten years, the Cyber city has had a number of MNCs, real estate companies and factories opening their offices here. This has led to a rapid growth in real estate in the city. And today, it has emerged as a major residential, commercial and retail hub. Gurgaon plans big for 2025 A K TIWARY The Economic Times The new Gurgaon-Manesar Master Plan 2025 is fuelling a boom in realty. It has brought in fresh areas under development and given a new lease of life to the city. ET Realty reports Cyber city Gurgaon was developed as one of the prime locations for real estate and industrial activity in the NCR. While the residential and the...

Supreme Court stays Delhi High Court's service tax order on rent Supreme Court stays Delhi High Court's service tax order on rent Chartered Accountant CA ICAI Chartered Accountants CA ICAI CAinINDIA ICAI Announcements Accounting Standards CA News ICAI Students ICAI Members Case Laws CPT IPCC Final ICAI Course CA Course ICAI Forum CA Question Papers ICAI Study Material : January, 13th 2011 The Supreme Court has stayed an order of the Delhi High Court, which stopped the Centre from recovering service tax on renting of immovable property for commercial use, including shops and malls, from some firms.   A Supreme Court bench comprising Justices Mukundakam Sharma and A R Dave stayed the interim order passed by the Delhi High Court on May 18, 2010. The Centre has challenged the order. "There shall be an interim stay of the operation of the impugned judgement till the next date," said the apex court, directing that the matter be listed...

In absence of stay from SC, Department can’t collect service tax on renting of immovable properties by resorting to other means Executive Summary: – In absence of Supreme Court’s order staying operations of High Court’s judgment relating to levy of service on renting of immovable property, Revenue Department could not instruct its officers to pursue the matter with tax payers calling upon them to pay service tax on same or to resort to other means under the law to protect the Revenue. Source of The Case Law:- Decided by: HIGH COURT OF DELHI, In the case of: SSIPL Retail Ltd. v. Union of India, Writ Petition (Civil) No: 13861 of 2009, Decided on : December 18, 2009 RELEVANT PARAGRAPHS: By the Finance Act, 2007, service “in relating to renting of immovable property for use in the course or furtherance of business or commerce” was introduced within the definition of taxable service as sub-section (zzz) to section 65 (105) along with corresponding insertions to section 66 and 65 (90...

taxworry.com – Delhi High Court : Service Tax on Renting of Property Valid ! : Delhi High Court : Service Tax on Renting of Property Valid ! september 23, 2011 by taxworry leave a comment Service tax on rent of immovable property now get seal of approval from Delhi High Court. Hundreds of lawyers including Sri Harish Salve and Dr Avishek M Sighvi could not pursue the Court that the service tax on renting of immovable property is unconstitutional.Delhi High Court vide its order dated 23/09/2011 dismissed the Hundreds of Writ Petitions filed by different persons . Service Tax Artificial Liability It was contented by the petitioner that an artificial liability has been created on the tenants by the Finance Act, 1994 which introduced the service tax. Reference has been made to sub-section 90(a) which was inserted in Section 65 of the Finance Act, 1994 by the Finance Act, 2007 to tax any “service provided to any person by any other person in relation to renting of immovable property f...

Service tax on rent is dicey - Money - DNA : One of the more controversial provisions of budget 2010, being made applicable retrospectively, is the explicit provision that the activity of renting is a taxable service. Background Service tax on renting of immovable property was first mooted by budget 2007. The tax was sought to be imposed on the service provided in relation to renting of immovable property for use in the course of furtherance of business or commerce. If you read the above line carefully, you will notice that the tax is on service in relation to renting and not on the rent itself. Consequently, some experts have the view that the rent income per se should not be subject to service tax, but only peripheral services that are rendered in relation to the renting. For example, if there is a composite lease agreement where the lease payments cover not only the rent but extra services such as maintenance, security, provision of utilities and support staff etc, these would be un...

Buyers cheer as service tax on property goes on short break - Mumbai - DNA : Home buyers and property developers can enjoy exemption from service tax, though temporarily. The Union finance ministry has sought legal opinion as to whether it can allow another government or outside agency (apart from the local civic body) to issue a completion certificate. A building completion certificate from the local authority is a must if a buyer wants exemption from service tax. The ministry has sought legal opinion as local authorities in some states do not issue completion certificates, whereas some such as Maharashtra take many years to issue one. In Mumbai, there are very few buildings that have got a completion certificate mostly because of the delay. In many cases, the certificate is elusive because the developer uses extra floor space or has not paid the dues to the civic body. Civic officials and developers say the Brihanmumbai Municipal Corporation stresses on issuing an occupation certific...

Service tax on renting of property upheld by court - Times Of India : MUMBAI: In a judgment that has enriched the central government coffers by an estimated Rs 10,000 crore in the last three years, the Bombay high court on Thursday upheld the constitutional validity of service tax on commercial real estate transactions on renting of property. A 12% service tax was introduced in the amended Finance Act, 2007. Dictating and delivering the judgment in the open court, Justice D Y Chandrachud held that the renting of land and building did comprise a "service" and that the Centre was entitled to levy a tax on it. The judgment, viewed as landmark in legal circles, has recognized wide powers with the Centre to levy a service tax on transactions which have an element of service. The judgment thus resolved the power of the Centre to bring under the service tax umbrella un-enumerated services too. The ruling will boost tax revenue for the government and will translate into higher rental...