RENTING - SUPREME COURT MODIFIES STAY ORDER

---------- Forwarded message ----------

From: Rebecca Andrews <rebecca.andrews88@yahoo.in>
Date: Fri, Oct 14, 2011 at 5:09 PM
Subject: Message from EGroup of SolapurCAs RENTING - SUPREME COURT MODIFIES STAY ORDER
To:

 

Supreme Court today modified it's earlier stay order of 28.9.2011 in the SLP filed by petitioners Retailers Association of India v. UOI against the Bombay High Court order that had upheld renting as a service with retrospective effect.

Petitioners are now required to pay 50% of arrears in 3 bi-monthly instalments within 6 months, furnish surety of balance 50%  and file an undertaking before the SC to this effect.

However, it has been stated that on success petitioners  would be entitled to refund of tax already paid alongwith interest, as per message conveyed by my senior Mr. Rakesh Chitkara, Advocate.

Readers may recall that no stay had been granted on imposition     of     service        tax       under    sub-clause (zzzz)   of    clause    (105)      of   Section      65    read    with Section 66 of the Finance Act, 1994 (as amended), insofar as the future liability towards service tax with effect from 1st October, 2011 is concerned. 

This implies that the Petitioners in other cases if approach the Hon'ble Supreme Court will not be required to pay service tax for the period prior to 30.9.2011. However, liability for the period w.e.f. 01.10.2011 is required to be discharged.

 

Kind regards,

Rebecca Andrews