service tax on barter system

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This query is : Resolved

mohsin balwa (Querist)

10 October 2016 we are the contractor and constructing the building on barter system, means we are not getting any consideration by cheque or cash but we get the flat s against the work and we sell that flat to the customers and we get the fund from that flat now my query is, 1. are we have rights to collect the service tax from cutomers 2. if yes then who is liable to paid service tax to the government, Developers or contractor Note :- we already paid service in work contract as per 5% scheme at the time of billing

Amol S Joglekar

Amol S Joglekar (Expert)

10 October 2016 you will be selling the flat, as per your requirement....so no service tax on sale of flat.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 October 2016 1 If you are selling the flats after completion certificate no need to collect service tax.
2 If you are getting the flat before completion certificate from developers the developers are liable to pay service tax to govt.

mohsin balwa

mohsin balwa (Querist)

11 October 2016 thanks for your valuable advice.

Amol S Joglekar

Amol S Joglekar (Expert)

12 October 2016 you are most welcome.

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