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...
It was 18 years ago when the levy of service tax was introduced with a meagre three services which has now grown manifold to 119 services. The scope of services has widened during the period of time. At present the levy of service tax is based on positive list. That is, only those services are taxable which are specifically mentioned in taxable category of service under Section 65(105) of the Finance Act, 1994. Service Sector enjoys considerable 55.6% of GDP whereas it contributes only 7 % in tax revenue to the Government. Further in order to facilitate transition to GST in near future, A concept of negative list has been introduced in the Budget 2012 presented on 16.03.2012 by inserting some proposed new sections in Finance Act, 1994 which will come into effect by way of notification after the Finance Bill gets presidential assent. Once this concept is given effect the scope of service will be expanded drastically since under this concept every activity which meets the new definition of ‘service shall be leviable to service tax except those which are proposed in negative list and exempted by way of Suitable Notification.
In a decision that might have an impact on realty prices, the Bombay High Court has upheld the decision of the Union government to levy service tax on construction of flats and shops. A division bench held by Justice DY Chandrachud and Justice Amjad Sayed on Friday upheld the decision of the Centre to levy service tax, saying it was legal and constitutional.
Punjab and Haryana High Court in the case of G.S. Promoters v. Union of India reported in MIT-2010-574-HC] upheld the constitutionality of the levy of service tax on the deemed service while selling residential complex by builder to buyer.
A division bench of the Gujarat high court, headed by chief justice SJ Mukhopadhaya, has issued notices to the Union finance ministry and service tax department, with regards to a petition filed, seeking to withdraw service tax on construction of res
The Maharashtra Chamber of Housing Industry (MCHI) has said it is hopeful of an early decision on the service tax issue. The second hearing of the High Court writ petition filed by MCHI challenging Service Tax levy on buildings under construction has been deferred to September 8, 2010. It’s a revenue related matter so we are hoping that early decision should come out, said Sunil Mantri, president, MCHI, who is also chairman of the Sunil Mantri Group.
The Bombay High Court has granted an interim stay on collection of Service Tax levied on buildings under construction, following a writ petition filed by the Maharashtra Chamber of Housing Industry (MCHI). Mr Sunil Mantri, President, MCHI, said the chamber had urged the High Court to restrain the respondents (Union Government and others) from taking steps against the members of the Chamber in respect of transactions for construction,
Construction of a complex intended for sale by the builder before, during or after construction is deemed to be a service provided by the builder to the buyer;No service tax is leviable if entire payment for the property is paid by the buyer after completion of the construction including certification by the local authorities;
For the purposes of this sub-clause, construction of a complex which is intended for sale, wholly or partly, by a builder or any person authorised by the builder before, during or after construction (except in cases for which no sum is received from or on behalf of the prospective buyer by the builder or a person authorised by the builder before the grant of completion certificate by the authority competent to issue such certificate under any law for the time being in force) shall be deemed to be service provided by the builder to the buyer.
Builders are all set to legally challenge the imposition of the service tax levied by the Centre on flats under construction. The Maharashtra Chamber of Housing Industry (MCHI), which has leading developers as its members, is considering filing a writ petition in the court against the service tax, which has been imposed since July 1.
The recent imposition of service tax on residential properties will have only a minimal impact on the demand for residential properties in the real estate sector as most buyers in the market are end-users than investors. This service tax of 10.3 per cent on 25 per cent of the home value, which will translate into a close to 2.6 per cent of the home value on projects under construction, was proposed in the Union Budget of 2010-11.
