sahil gupta
04 April 2013 at 18:27
Dear Experts,
A Hotel space in a shopping Mall at Indore (MP) was given on Leave and Licence basis in 2006. terms and conditions of agreement states that "any kind of taxes, levies and other taxes shall be payable by Licensor".
A supplementary agreement was entered into parties after applicability of Service tax by Govt of India by amendment in Finance Act in 2007.
Another supplementary agreement was entered into parties in 2008.
In both of these supplementary agreements, the earlier terms were applicable as to liability of tax.
Now, a legal issue as to taxation has occured as to burden of Service Tax lies on Licencee or Licensor.
Licencee insists that as Licensor has agreed that "all taxes are payable by Licensor under leave and licence (2006) and same conditions were agreed in suppl. agreement in 2007 & 2008. Hence Service Tax is to be paid by Licensor.
Licensor insists that as the terms and conditions does not states that "all direct and indirect taxes are to be paid by Licensor" hence licencee is liable to pay service tax and moreover this fact is seconded by the fact that as the supplementary agreement was entered in year 2007 and 2008, it is nowhere mentioned that Service tax is to be paid by Licensor.
Licensor rely on following precedents:
PEAREY LAL BHAWAN ASSOCIATION Vs M/s SATYA DEVELOPERS PVT LTD 2011-TIOL-114-HC-DEL-ST held as under:
Service Tax - Renting of Immovable Property - Service recipient is required to pay the Service Tax to the service provider even if the contract did not specifically mention it; it is the service which is taxed, and the levy is an indirect one, which necessarily means that the user has to bear it.”
and In All India Federation of Tax Practitioners v. Union of India, (2007) 7 SCC 52 it was held “Service tax is an indirect tax levied on certain services provided by certain categories of person including companies, associations, firms, body of individuals, etc.
The obligation regarding performance of a contract was not decided, visualised by parties at time of entering into contract, in tis case the obligation of parties shall be as per prevailing law.
Legal notice has been issued by Licensor which has been replied by Licencee. To support Licensor's case, Pls guide in the above stated facts what else plea can be raised by the Licensor.
Incase experts have dealt with similar case or are in knowledge of any precedent, pls provide the same.
Thanks in advance
Sandip
04 April 2013 at 14:24
We are in SEZ, could we claim service tax which is other than the 119 listed
Elzhil
04 April 2013 at 11:55
Sir, I have a flat in Bangalore with the following purchase details: Date of Purchase Agreement - Feb 2010 with value INR 38,80,000; Date of Registration / Possession - Nov 2010 with value INR 18,60,000.
Now I'm selling this flat with the following details: Date of Sale Agreement - Apr 2013 with value INR 67,00,000; Date of Registration - July 2013 with value INR 67,00,000. Questions: 1) Will this come under Short term gain or Long term gain and how it is calculated 2) how much will be the capital gain tax 3) How to minimize this tax. Thanks a lot for your help.
Sushant S.Dharmadhikari
04 April 2013 at 10:08
can cst chrged on freight & transit insurance when freight & transit insurance separetly charged
Bhalnish Desai
03 April 2013 at 14:34
Is Pension received under Employee's Pension Scheme (EPS) considered as taxable income or is an exempt income.
Please guide
ashok thakker
02 April 2013 at 18:13
Sir,
We are into storage and handling business having our warehouses,and mainly store Tea meant for Kolkata auction system.
Recently we got an order for storage and handling of Dal, chana, Matar etc these being agricultural produce, is it also exempted from service tax as in case of tea which is in negative list.
Please clarify.....
Regards,
ashok thakker
ashok thakker
01 April 2013 at 20:15
Can IT file be opened twice for scrutiny ?
my assessment order for AY 2006-07 opened once in 2009 addition was made,then after again reopened and reassessed, is it legally allowed ?
pl clarify.....
regards,
ashok thakker
YP Singh
01 April 2013 at 14:22
TDS are being recovered every year on my salary income by the CDA ( Controller of defence account) but CDA is not issuing the Form 16 and i think he is also not depositing the so recovered amount of income tax against my PAN as their is no entry visible of any kind in the form 26AS . It is creating the big hindrance filing the e Return. Please suggest me the course of action in this regard.
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