Topic
Renting of Immovable Property
2 articles
Indirect Tax & GST
Rule 6(5) and the 'Exclusively' Test: Madras High Court Upholds Full CENVAT Credit for an IT Park Operator but Sustains Service Tax on Fit-Out Charges
In Commissioner of GST & Central Excise v. Ascendas IT Park (Chennai) Ltd., a Division Bench of the Madras High Court reads the word 'exclusively' in Rule 6(5) literally, rejects a Board circular as irrelevant, and yet rules for the Department on service tax on fit-outs.
13 min readIndirect Tax & GST
No Sovereign Shield for Commercial Leasing: CESTAT Holds Delhi Development Authority Liable to Service Tax on Renting Nazul Land
The Delhi Development Authority argued that leasing government land and running its sports complex were sovereign functions immune from service tax. CESTAT disagreed: an enabling power, exercised for consideration retained in the authority's own accounts, is commerce, not statutory duty.
13 min read