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Service Tax Applicability on collection of development and maintenance charges by developer at the time sale deed. - Service TaxExtract Issue: The Firm is engaged in the business of development of residential flat. They are collecting a sum of ₹ 100 per square feet from customer at time of sale of plot towards maintenance of plot as scheme is not completed so at present amount collected is shown as liability in the balance sheet under the head development and maintenance charges. Such collected sum will be transfer to the service society, once society formed. Query: Whether service tax is payable on such development and maintenance charges collected and further to be transferred to service society?
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