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Ser tax onflat constructions on my clients land by a builder

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This query is : Resolved

vandana agarwal (Querist)

12 October 2016 MY CLIENT HAVE SERVICE TAX REGISTRATION, MY CLIENT OFFERED HIS LAND TO A BUILDER TO CONSTRUCT G+5 RESIDENTIAL FLATS ON HIS LAND. ARRANGEMENT DONE BETWEEN THEM IS OUT OF TOTAL FLATS 40 % FLATS SELLING RIGHT IS OF MY CLIENT AND REST 60 % FLATS SELLING RIGHTS IS UNDER BUILDER'S HAND. NOW MY QUESTION IS WHAT WOULD BE THE SERVICE TAX IMPLICATIONS IN HAND OF MY CLIENT FOR HIS 40 % SHARE FLATS AS WELL AS BUILDER'S 60 % SHARE FLATS WHEN MY CLIENT SELL FLATS AS WELL AS BUILDER SELL FLATS AND GET MONEY IN THEIR RESPECTIVE HANDS.

PLEASE REPLY
REGARDS
VANDANA AGARWAL ( CHARTERED ACCOUNTANT )
9835580241 ( cakoderma@gmail.com

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

12 October 2016 No service tax applicable if flats were sold after completion certificate. In case of sale under construction, service tax payable at 15% on 30% value of respective share of flats sold.

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