service tax on land owners share in JDA

This query is : Resolved

Sunil (Querist)
Follow

06 March 2017 hi, i am receiving some apartments from builder as per joint development agreement in another 2-3 months. i do not intend to sell any of them. i am aware i am liable for long term capital gain. but builder is saying i need to pay 3.5% service tax within a month of getting possession certificate from him. the value will be based on builtup area i am receiving at guidance value at registrar office. is it true? thought there is service tax only if i sell my share before construction is complete.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

07 March 2017 Since the land belongs to you you need to pay service tax at 15% on 40% value of built up area allotted to you. Service tax applicable if you sell it before completion.

Sunil

Sunil (Querist)
Follow

07 March 2017 i am not planming to sell any. yet builder is saying I need to pay 3.5% on value of my share. it doesn't make sense as I am not planning to sell

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

08 March 2017 You are getting flat constructed in your land, your builder is liable to pay service tax on such works contract. He is collecting the service tax paid to govt.

Sunil

Sunil (Querist)
Follow

08 March 2017 so is it more of a liability from builder side. if none of us pay. will notice be sent only to builder or me also

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

08 March 2017 Yes it is builder's liability and notice will be sent to builder only.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

CA.K.RAMAKRISHNA. PRABHU

T E SOUNDARARAJAN

CA Varun Gupta

Rohit Sachdeva

CA. MOHIT SHARMA

Subscribe Now

service tax on land owners share in JDA

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA