Builders go to Court
The DGST's circular proposing to levy service tax on all builders found great favour with the Chief Commissioners and they have been going great guns to rope in the builders under the tax net. (For details on the circular please see ( dated: 23 02 2006). The Builders had sent a representation to the Board which had been forwarded to the DG Service Tax. But even before the DGST answer them, coercive action is being taken to ‘recover' the taxes. The Promoters and Builders Association of Pune (PBAP) is understood to have filed a writ petition in the Bombay High Court. Tax consultants will soon have to shift base from Tribunals to High Courts as many Service Tax issues will be going to the High Courts for immediate redressal. Given the style of tax administration, the Government will be contribution eagerly for clogging the courts with litigation, with their clarifications and circulars.