NEW DELHI: Companies cannot be subjected to service tax for renting premises to run their businesses,the Delhi High Court has ruled while disposing of petitions filed by some retailers against a government directive.
The court struck down Centre’s notification, by which renting of immovable property for use in the course of business was brought within the ambit of service tax.
“We hold that law
does not in terms entail that renting out of immovable property for use in the course of furtherance of business or commerce would by itself constitute a taxable service and be eligible to service tax,” Justice B D Ahmed said.