Sale of flat on token money basis
This query is : Resolved
09 January 2013
what is the service tax liability if someone sold flats on token money basis?
10 January 2013
Dear Kunal,
Token money is just like advance and if the flat is under construction then Service tax is payable.
Thanks
Token money is just like advance and if the flat is under construction then Service tax is payable.
Thanks
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10 January 2013
sir .. if mr A gives rs 10lakhs as token money to builder to purchase the flat for rs 1 crore and mrA paid service tax on rs 10lakh
as flat is under construction
in the mean while mrA agrees to give this flat to MR.C after obtaining completion certificate for rs 1.2 crore
AND SALE DEED IS EXECUTED DIRECTLY between the builder & MR.C
WHAT IS TREATMENT OF THAT PROFIT(RS 20LAKKS)
DOES THAT PROFIT OF RS 20laks liable to service tax in the hands of MR.A ??
if yes,CAN HE CLAIM INPUT CREDIT OF SERVICE TAX PAID ON RS 10 LAKH???
SIR PLEASE REPLY
as flat is under construction
in the mean while mrA agrees to give this flat to MR.C after obtaining completion certificate for rs 1.2 crore
AND SALE DEED IS EXECUTED DIRECTLY between the builder & MR.C
WHAT IS TREATMENT OF THAT PROFIT(RS 20LAKKS)
DOES THAT PROFIT OF RS 20laks liable to service tax in the hands of MR.A ??
if yes,CAN HE CLAIM INPUT CREDIT OF SERVICE TAX PAID ON RS 10 LAKH???
SIR PLEASE REPLY
11 January 2013
Dear Kunal,
The tax paid on 10 lacs is denied by the Rule 2(l) of CCR,2004 excluding part.
In my this 20 lacs seems to be commission on sale of Immovable property and liable to tax in the hand of A.
Crux: No Input on 10 Lacs and Service tax is applicable on 20 Lacs as commission.
Thanks
The tax paid on 10 lacs is denied by the Rule 2(l) of CCR,2004 excluding part.
In my this 20 lacs seems to be commission on sale of Immovable property and liable to tax in the hand of A.
Crux: No Input on 10 Lacs and Service tax is applicable on 20 Lacs as commission.
Thanks
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