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2016 (4) TMI 985 - AT - Service TaxService tax liability - Renting of Immovable Property Services - Section 65(105)(zzzz) of the Finance Act, 1994 - Amounts collected as rent by providing on lease various commercial and business properties to outsiders or otherwise - Held that:- there is no exemption granted to any municipal council on the rent received by leasing the commercial properties and accordingly, the main contention of the appellant that they are providing sovereign function while renting out property is rejected. The service tax liability and the interest thereof is upheld and should be calculated on the amounts received by the appellant as cum-tax amount. Imposition of penalties - Held that:- the appellant being municipal council could not have had any intention to evade service tax liability. Accordingly, by invoking the provisions of section 80 of the Finance Act, 1994, the penalties imposed are set aside. - Appeal disposed of
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