Service Tax Applicability on collection of development and maintenance charges by developer at the time sale deed.

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..... 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 s .....

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..... ervice 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? - Reply By KASTURI SETHI - The Reply = The firm has collected an amount of ₹ 100/- per square feet from their customers towards maintenance of plot at the time of sale of plot. Thus advance amount was received .....

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..... towards maintenance of plot (immovable property) which was taxable under the category of Management, Maintenance or Repair Service defined under Section 65(105)(zzg) of the Finance Act .. As per Rule 3 of Point of Taxation Rules, 2011 , the point of taxation was the date of receipt of such advance. Emphasis is on maintenance and not on development of plot. - Reply By JIGAR SHAH .....

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..... - The Reply = Thank You. - Service Tax Applicability on collection of development and maintenance charges by developer at the time sale deed. - Query Started By: - JIGAR SHAH Dated:- 19-8-2020 Service Tax - Got 2 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindi .....

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..... a.com - TMI - TaxTMI - TMITax .....

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