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TMI BlogService Tax LiabilityX X X X Extracts X X X X X X X X Extracts X X X X ..... Service Tax Liability X X X X Extracts X X X X X X X X Extracts X X X X ..... om para 6.2.1 of the Guidance Note :- 6.2.1 What would be the liability to pay service tax on flats/houses agreed to be given by builder/developer to the land owner towards the land /development rights and to other buyers. If payable, how would the services be valued? Here two important transactions are identifiable: (a) sale of land by the landowner which is not a taxable service; and (b) con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... struction service provided by the builder/developer. The builder/developer receives consideration for the construction service provided by him, from two categories of service receivers: (a) from landowner: in the form of land/development rights; and (b) from other buyers: normally in cash. Construction service provided by the builder/developer is taxable in case any part of the payment/developmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t rights of the land was received by the builder/ developer before the issuance of completion certificate and the service tax would be required to be paid by builder/developers even for the flats given to the land owner. Reply By KASTURI SETHI: The Reply: SH. BT RAVI JI, I concur with the views of Sh.Mahir S, Sir. I also add that in the Joint Development Agreement, land owner is also your serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice receiver (customer) directly or indirectly. With effect from 1.7.12, all kinds of construction service fall under one roof i.e. Works Contract Service. Pl. also go through Notification No.30/12-ST dated 20.6.12 (Serial No.9). It may be applicable to you keeping in view of the terms and conditions of the Joint Development Agreement and the status of the land owner whether individual or business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entity. Reply By vasudevan unnikrishnan: The Reply: Dear experts, a corollary querry---If the JV agreements are preior to 1/7/2010 ,does it make any difference? Reply By KASTURI SETHI: The Reply: Sh.Vasudevan Unnikrishnan Ji, Yes, Sir. It makes no difference. It is natural that there would be no clause regarding payment of ST in the JV Agreement; even then Service Tax has to be paid. and it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would also be covered under WCS. X X X X Extracts X X X X X X X X Extracts X X X X
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