Service tax on real estate developers

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bharat (Querist)
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13 July 2012 if a developers developing a project having less than 12 units.
Is the receipts of the project liable to pay service tax after the notifications of 01/07/2012.

RENGARAJ R.K

RENGARAJ R.K (Expert)
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13 July 2012
Negative list:

14. Services by way of construction, erection, commissioning, or installation of original works pertaining to,-

(a) ....

(b) a single residential unit otherwise than as a part of a residential complex

Under new notification in the negative list, more than one residential unit is coming under taxable service.

Arun Gulati

Arun Gulati (Expert)
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14 July 2012 In my project is liable to service tax and you are governed by the Rule 5 of Point of taxation Rules i.e. no tax shall be payable
(a) to the extent the invoice has been issued and the payment received against such invoice before such service became taxable;
(b) if the payment has been received before the service becomes taxable and invoice has been issued within fourteen days of the date when the service is taxed for the first time

New circular No. 162 on POT is also clarifying same position.

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