Service Tax on renting - High Court admits writ
The Bombay high court has admitted a petition challenging the levyof service tax on rents from immovable properties.
The petitioner's argument is that when a landlord rents his property out, it involves a 'transfer or right' and does not constitute a 'service'. Leasing or renting out any premise creates and destroys rights. Hence, such transactions cannot be termed as 'services' rendered by the landlord to a tenant. Therefore, service tax should not be levied on such transactions