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...
Vide Notification No. 8/2016-ST dated 1st March, 2016 the percentage of abatement with regard to the value for calculation of amount of service tax on all type of construction of a complex, building, civil structure etc. have been fixed @ 70% wef 1st April, 2016.
In a tri-partite construction business model, there are 3 parties involved: i) The land owner; ii) The Builder/developer & iii) The contractor (who undertakes the construction). Typically, in such a model, the land owner enters into an agreement with the builder, whereby, the land owner gives either land/development rights (to construct/develop a residential complex and sell flats/houses of such complex to buyers) to the builder.
According to the CBEC Education Guide on Taxation of Services, 2012 value of construction service provided to such land owner will be the value of the land when the same is transferred and the point of taxation will also be determined accordingly.
No Service Tax on Transfer of Immovable Property if entire consideration received after issue of Occupancy Certificate. In order to resolve a long standing issue relating to levy of Service Tax on sale of flats/dwellings etc. after issue of occupancy certificate but before issue of completion certificate in areas under the jurisdiction of Municipal Corporation of Greater Mumbai i.e. Brihanmumbai Municipal Corporation (BMC),
A. Whether the agreement between developer and land owners is in the nature of joint venture? B. If it is not a joint venture then whether the transaction of giving 400 units of flats in return of a land (i.e. a non – monetary consideration) amounts to service and whether the same is liable for service tax?
What is a Land Development Agreement Land Development Agreement also known as Joint Development Agreement is one of the arrangements commonly resorted to by the builders/developers nowadays to develop and sell properties. There are two parties to this agreement, a Land owner and a Builder. It is sometimes also a tripartite agreement between the land […]
In short, our present discussion is confined to implication of VAT and Service Tax on those contracts where, apart from material and services, value of land is also taking part of the bargain, and the size of the plot is limited to few hundred yards containing, generally, four to ten units.
The value of goods supplied or provided free by a service recipient under construction of commercial or industrial complex service, do not comprise the Gross amount under Notn.no.15/2004. Landmark judgment.
It has been ‘mentioned that many builders charge additional amount known as “floor rise charges” in addition to the normal sale price of a flat. It is also mentioned in your letter that the said charges are recovered for additional construction cost for floor rise because the construction cost increases as per the increase in the floor.
Sales tax / VAT is either payable on sales of goods or on deemed sales within the meaning of Article 366(29A)(b) of the Constitution on the value of goods transferred in the execution of a works contract. To constitute a works contract, there should be two parties to the contract which should be for construction of Flats, etc on behalf of the contractee under a contract for construction and not for self.
