Finally the Delhi High Court has removed service tax from commercial rental property. It will be a great relief for the owners of various commercial properties in all over India as the announcement made by the Delhi High Court will be applicable to the whole country. It will be effective from the particular day when the former service tax was levied that is right from 1st June 2007.
The former rate of service tax imposed on commercial rental was 12.36% and it was effective from 1st June 2007 till February 23, 2009. As of now the government minimized the service tax from 12% to 10% and it will be effective from February 23, 2009. The government of India earns hefty amount of money from service tax and it is reported that the service tax which is imposed on more than 100 services generated revenues of Rs.65, 000 crore in the last financial year. The rate of revenues earned from various taxes is increasing day by day.
The retail business is one of the pillars of Indian economy and whenever new commercial properties come up then retailers make a rush to get the early bookings. There are multitudes of commercial properties which comprise of shopping malls, railway stations, airports etc. Annoyed retailers say that about 15% of the money earned from the rents of such properties has to be spent on the total operational cost. This has been a great headache for the commercial property owners as well. The present initiative taken by the government of India will truly be helpful and ease the lives of many retailers.
The former rate of service tax imposed on commercial rental was 12.36% and it was effective from 1st June 2007 till February 23, 2009. As of now the government minimized the service tax from 12% to 10% and it will be effective from February 23, 2009. The government of India earns hefty amount of money from service tax and it is reported that the service tax which is imposed on more than 100 services generated revenues of Rs.65, 000 crore in the last financial year. The rate of revenues earned from various taxes is increasing day by day.
The retail business is one of the pillars of Indian economy and whenever new commercial properties come up then retailers make a rush to get the early bookings. There are multitudes of commercial properties which comprise of shopping malls, railway stations, airports etc. Annoyed retailers say that about 15% of the money earned from the rents of such properties has to be spent on the total operational cost. This has been a great headache for the commercial property owners as well. The present initiative taken by the government of India will truly be helpful and ease the lives of many retailers.
1 comments:
Its a great news and a good relief!
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