Abatement under notification 26/2012 for developer

1 ) Yes, booking amount received will be covered under service tax

2 ) You can take abatement 26/2012 but condition is that value of land should be inclusive in value         of house.

I want to also say that A ltd also required to pay VAT as it is work contract. it is better to form new company by A ltd & B ltd.

Thanks for the reply.

I admit that the tansaction between A Ltd and the prospective buyers are taxable service either under works contract/construction of residential complex.

My Query is with respect to the transaction between A Ltd (the Developer) and B Ltd (the Land owner)

However i want to clarify the following

1) A ltd is not providing any works contract servcie/ construction service to B Ltd

2) No part of the developed project/flat goes back to B Ltd.

3) B Ltd transfers the development rights to A Ltd

4) consideration for the same is paid by A ltd to B Ltd

Now would this transaction will be a taxable service?. if so under which category

Waitng for a reply

CS Saju Philip