Latest TRU Circular Opens Up A Pandora's Box
The Tax Research Unit of the Ministry of Finance has issued a highly controversial Circular No. 98/1/2008-ST on January 4, 2008 . This circular meant to clarify issues related to renting of immovable property services and works contractor's services, has instead, managed to open up a Pandora's box. In a brazen and blatant attempt to deny Cenvat credit benefits to a service provider under “Renting of Immovable Property” service, the clarificatory Circular would seem to have raised a big question mark on the leviability of service tax on “Renting of Immovable Property”
Immediately after the Circular was issued we asked our domain expert Natarajan for his comments which we carried on Friday in our Special column. We will bring you expert opinion from another expert in the field Sivakumar tomorrow. As Natarajan says, Board has been mean and as Sivakumar says Board is wrong, DDT has nothing to add except to agree with our experts.