Service tax on transfer charges
This query is : Resolved
Akhilesh Agarwal
(Querist)
12 December 2012
My query is we are a coloniser and sale only plots (not any construction in such plots) we are taking transfer charges from customers when plot will transfer from original buyer to second buyer. In this case transfer charges fees liable for service tax.
CA Nikhil Jhanwar
(Expert)
12 December 2012
This matter has undergone various litigation. Prior to 01.07.2012 SCNs were issued to Builders for recovery to service tax on transfer charges. Although the CESTAT Delhi in certain cases has decided the matter in favour of builders that transfer charges are not liable to service tax.
After introduction of negative list w.e.f. 01.07.2012, in my view since it falls under the new definition of ''service' it shall be leviable to service tax.
After introduction of negative list w.e.f. 01.07.2012, in my view since it falls under the new definition of ''service' it shall be leviable to service tax.
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Akhilesh Agarwal
(Querist)
12 December 2012
Dear Nikhil please confirm the service tax is applicable or not
CA Nikhil Jhanwar
(Expert)
12 December 2012
Prior to 01.07.2012, Service tax not applicable
Post 01.07.2012, Service tax applicable.
It is personal view and contrary suggestions are invited.
Post 01.07.2012, Service tax applicable.
It is personal view and contrary suggestions are invited.
Akhilesh Agarwal
(Querist)
12 December 2012
Dear Mr Nikhil, in my opinion this is not the part of any service, this is only the charges against the change of ownership of the plot.
CA Nikhil Jhanwar
(Expert)
12 December 2012
After introduction of negative list, there is not classification of any service. Every activity which fulfills the conditions laid down in definition of 'service'' shall be taxed to service tax.
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