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Service tax applicability, Service Tax |
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Service tax applicability |
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Land owner enter an agreement with builder for building apartments. As a consideration, builder agrees to allocate few fully furnished flats to the land owner on free of cost. please let us know the applicability of service tax. regards Saravanan. Posts / Replies Showing Replies 1 to 7 of 7 Records Page: 1
It is not free of cost. Service Tax is applicable on the value of a few fully furnished flats under Works Contract Service.
Service tax is applicable in such cases since a taxable service i.e. construction service is involved. Valuation and point of taxation have been clarified by CBEC vide Circular No.151/2/2012 dated 10.2.2012, which is reproduced below: F.No.332/13 /2011-TRU Government of India Ministry of Finance Department of Revenue Central Board of Excise & Customs (Tax Research Unit)
New Delhi, 10th February, 2012 To Chief Commissioner of Customs and Central Excise (All) Chief Commissioner of Central Excise & Service Tax (All) Director General of Service Tax Director General of Central Excise Intelligence Director General of Audit Commissioner of Customs and Central Excise (All) Commissioner of Central Excise and Service Tax (All) Commissioner of Service Tax (All)
Vijay kumar Sir's reply is now supported by TRU vide F.No.354/311/2015 dated 20.01.2016 stating that Circular No. 151/2/2012-ST dated 10.02.2012 will prevail over Education guide. Hence I agree with Vijay Kumar Sir's reply.
Yes sir, agree to the Board Circular , as rightly quoted by Vijay Kumar ji.
Thanks to Sh.Ganeshan Kalyani, Sir. for latest information. Agreed with all the experts on this issue.
Thanks Kasturi Sir for acknowledging my reply.
The views expressed by the learned friends are very clear. You may pl. refer the recent Board circular issued last week for clarification more specifically on valuation in the present scenerio. Regards Surya Page: 1 Old Query - New Comments are closed. |
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