Case Law Details
Case Name : Suresh Kumar Bansal Vs UOI (Delhi High Court)
Related Assessment Year :
Courts :
All High Courts Delhi High Court
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CA Nischal Agarwal
Levy of Service Tax on Under-Construction Flats – UNCONSTITUTIONAL
Reliance in this connection can be placed on the decision of Hon’ble Delhi High Court in case of Suresh Kumar Bansal vs UOI [W.P.(C) 2235/2011] wherein levy of Service Tax on the value of flats sold during construction stage has been held unconstitutional, if such value includes the value of Land.
Facts of the Case:
The petitioner has entered into an agreement with the Builder for buying flats in a housing project located at Noida. The Builder collected Service Tax from the petitioner in addition to t...
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Quite a well -reasoned judgment; a development of its
kind not-so-unexpected by anyone, if were properly equipped, who has ever cared to read mindfully and incisively understand the special characteristics of property rights in ‘unit’ (I.E. Flat or Apartment) of a building.
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Quite a well -reasoned judgment; a development not-so-unexpected by anyone who has ever cared to read mindfully and incisively understand the
Hon’ble Delhi High Court has declared the existing levy of Service Tax on Construction Service as unconstitutional. However, it is most likely that either the revenue will challenge this decision before Supreme Court or the lacuna in law will be rectified by way of an amendment.
Whats implication of this judgement? I have a unreconstruction property in noida extension
Could you please explain the net effect of this rule ? Do we need to reduce the value of land part in the flat cost and then pay service tax @ 25% of tax after abatement of 75% ?