New apartment building in joint venutre

I am 77years old perons, planning to enter JV with builder to construct apartment. I will be sigining JV with builder on my land. as per planning, 12 houses are going to come up. we are sharing 50: 50 ie 6 apartment will be given to me ie Land owner, 6 apartment will be taken by builder. Builder will sell his 6 apartment on completion or before completion. Kindly advice me whether any service tax will be incurred on my portion ie land owner portion of six apartment. Will there be Capital gain on land owners portion. the land purchased by me 35years back. Builder simply says any Service tax, income tax and Capital gain portion on the LAND owners share of six apartment will be to Land owners account. Roughly each apartment will be valued as per guideline value at Rs.70lakhs. pl advice Read more at: /forum/create_message.asp?cat_id=6 dear sir

 

I am 77years old perons, planning to enter JV with builder to construct apartment. I will be sigining JV with builder on my land. as per planning, 12 houses are going to come up. we are sharing 50: 50 ie 6 apartment will be given to me ie Land owner,  6 apartment will be taken by builder.  Builder will sell his 6 apartment on completion or before completion.

 

Kindly advice me whether any service tax will be incurred on my portion ie land owner portion of six apartment.

Will there be Capital gain on land owners portion.  the land purchased by me 35years back.

Builder simply says any Service tax, income tax and Capital gain portion on the LAND owners share of six apartment will be to Land owners account.  Roughly each apartment will be valued as per guideline value at Rs.70lakhs.

 

pl advice

 

thanks

sivaprabu

Replies (1)

Hii Sir,

1. Capital gain

You are liable for income tax on capital when the sale deeds executed with buyers for your portion of apartments and builders portion also.

 2.Service tax 

Land owners portion of land is not liable for service tax. However, building portion is liable for service tax in the hands of the builder. In this case as personally you are not liable to pay service tax. The builder is liable for service tax for the whole portion of building. According to joint venture agreement the builder company can collect service tax from you for the 50% portion of building received by you. Regards

.

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