builder and developer

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 an owner of land himself form a partnership firm alongwith his wife and construct the flat them-selves, after trensferring in the firm land owned by the partner now does the service tax applies
Replies (3)
please eleborate ur question ie the no of flats sold constrution in the firms name or a different entity as contractor land ownership with the contractor or the contractor is different thnx
no of flat sold 48 construction in the firms name only as above stated land was in the name of one of the partner who brought the land in the firm by way of book entry only
the exigibility to service tax does not depend on these factors. I have written a very detailed article which has been published in Service Tax Today (2007) 9 STT 61 MAG. Transfer of land does not attract Service Tax. The transfer of Superstructure attracts service tax IF the transfer is pursuant to an agreement and the allottee becomes the owner of the flat merely on handing of possession of the flat and payment of agreed price but without execution of registered saledeed/transfer deed. If conveyance of superstructure is through a conveyance deed, the transaction is that of transfer of property and not a work contract and no service tax is payable.


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