Applicability on construction work

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 May 2013 DEAR EXPERTS

I WANTED TO KNOW THE APPLICABILITY OF SERVICE TAX IN CASE IF THE LAND OWNERS AND DEVELOPERS ARE THE SAME PERSONS.

SECONDLY IF LAND OWNERS FORM A PARTNERSHIP FIRM TO CONSTRUCT A COMPLEX IN UNDIVIDED LAND WHAT IS THE IMPACT.

THIRDLY, IF ADVANCE FOR BOOKING IS RECEIVED BY THE FIRM, THAN ON WHAT AM0UNT THE SERVICE TAX IS TO BE PAID.

LASTLY OUT OF ABOVE WHO IS RESPONSIBLE TO PAY THE SERVICE TAX LAND OWNERS IN THEIR INDIVIDUAL BASIS OR PARTNERSHIP FIRM AND ON WHICH AMOUNT.

PLEASE REPLY SOON...ITS URGEN

CA Vikas Acharya

CA Vikas Acharya (Expert)
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25 May 2013 1. if both land owner and developer is same:
tax will be payable if developed for sale and any consideration received before completion from buyer.

2. in that case same as above, i.e if the firm develop it for sale, partnership firm will collect tax from buyers and will pay tax to govt.

3. Amt. will be paid on advance received, or invoice raised whichever is earlier.

4. in 1st case. owners.
in 2nd case partnership firm.

Querist : Anonymous

Querist : Anonymous (Querist)

25 May 2013 THANKS MR. VIKAS

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