Service Tax : Amid of all this steps an amendment has also been made under service tax laws relating to valuation of Construction Service. The r...
Service Tax : Under the new regime of service tax i.e after 01.07.2012 service tax on construction service is explained u/s 66 E(b) i.e. declare...
Service Tax : Decision given by Delhi High Court is for a period prior to July 2012. From July 2012 with introduction of Negative List, all the ...
Service Tax : CA Nikhil M. Jhanwar Decoding Judgment of Delhi HC on Service tax in case of Under-Construction Flats Real estate industry has bee...
Service Tax : We have a lot of verdicts and planning’s as discussed above, but due to the length constraint of a single article, we will be sh...
Service Tax : No Service Tax on Transfer of Immovable Property if entire consideration received after issue of Occupancy Certificate. In order t...
Service Tax : In a decision that might have an impact on realty prices, the Bombay High Court has upheld the decision of the Union government to...
Service Tax : A division bench of the Gujarat high court, headed by chief justice SJ Mukhopadhaya, has issued notices to the Union finance minis...
Service Tax : The Maharashtra Chamber of Housing Industry (MCHI) has said it is hopeful of an early decision on the service tax issue. The secon...
Service Tax : Builders are all set to legally challenge the imposition of the service tax levied by the Centre on flats under construction. The ...
Service Tax : CESTAT Ahmedabad ruled that construction of new buildings or civil structures as turnkey projects falls under Works Contract Servi...
Service Tax : Thus, while the legislative competence of the Parliament to tax the element of service involved cannot be disputed but the levy it...
Service Tax : The Bombay High Court has granted an interim stay on collection of Service Tax levied on buildings under construction, following a...
Service Tax : Construction of a complex intended for sale by the builder before, during or after construction is deemed to be a service provided...
Service Tax : According to the CBEC Education Guide on Taxation of Services, 2012 value of construction service provided to such land owner will...
Service Tax : It has been 'mentioned that many builders charge additional amount known as "floor rise charges" in addition to the normal sale p...
CESTAT Ahmedabad ruled that construction of new buildings or civil structures as turnkey projects falls under Works Contract Service. Analysis of Kirti Infrastructures Ltd case.
Amid of all this steps an amendment has also been made under service tax laws relating to valuation of Construction Service. The real estate sector currently comes under the ambit of service tax, when it receives sum from its buyers during the construction period
Under the new regime of service tax i.e after 01.07.2012 service tax on construction service is explained u/s 66 E(b) i.e. declared service of the Finance Act,1994. The constitutional validity was also upheld under old regime in case of Maharashtra Chamber of Housing Industry v. Union of India
Decision given by Delhi High Court is for a period prior to July 2012. From July 2012 with introduction of Negative List, all the services other than those specified in the negative list and those exempt from service tax, shall be liable for service tax.
CA Nikhil M. Jhanwar Decoding Judgment of Delhi HC on Service tax in case of Under-Construction Flats Real estate industry has been in limelight for reasons, right or wrong every season from economy to environment, from tax to transaction, from consumer to court. This time it struck chord with tax battle. We are discussing about […]
We have a lot of verdicts and planning’s as discussed above, but due to the length constraint of a single article, we will be sharing with you some more valuable articles in a near future, till then enjoy the above cases and save your lakh of hard earned money and spend it in something more valuable.
When builders render services in relation to construction of complex, it is a case of composite contract with buyers of flats. No doubt service element is involved in the construction of complex and the levy is justified by the Hon’ble Delhi High Court, but still no service tax can be charged by the builders from the buyers. The situation will become crystal clear when we have a glimpse at the background of this levy.
All of us would have observed reports in the press, that the Hon’ble Delhi High Court has ruled on 3.6.2016, in the case of a writ petition, that in the case of a composite contract between a buyer of an apartment and the developer of the apartment, wherein the total value of the apartment includes the value of land also, no service tax can be levied.
In one of the recent judgments of Delhi High Court (Division Bench), the court while disposing the WP(C) No. 2235/2011 and WP(C)2971/2011 in the matter of Suresh Kumar Bansal and Anuj Goyal v. Union of India has held that Service Tax on flats can not be levied on composite contracts.
Thus, while the legislative competence of the Parliament to tax the element of service involved cannot be disputed but the levy itself would fail, if it does not provide for a mechanism to ascertain the value of the services componentwhich is the subject of the levy.[Para 37]
