Plc charges in case of construction

Hello ALL,

My query is related to PLC (Preferential location Charges) which are related to constrction services of a residential complex.

PLC came into existence as on 1/7/10 along with construction services.

If a demand note is issued before 01/07/10 for PLC and the provision of service was also before that day, but the customer makes payment or takes possession after 01/7/10, am i liable to pay service tax on that amount?

Replies (3)

Dear Shraddha,

 

it depends on the date of entering into the agreement. If the agreement is entered into post it coming into existance, then you are liable to pay Service Tax on the PLS.

 

- Ankit

Dear Ankit,

Agreement has been entered before 01/07/10 but in agreement it is written that the amount has to be paid on or before possession.

So does it mean that the date of provision of service would be the date of possession and not completion of building or date of issue of demand note.

 

Also, for your reply above, could you please tell me on what basis you confirmed it as exempt.

 

Thank you for replying.

Dear Shraddha,

 

As per the Transfer of Property Act, the transfer completes on the date of the registration of the agreement and not on the date of the possession.

 

Thus, the transfer got completed on a date before the taxability of the service. This is the Point of Taxation.

 

Thus i am saying it is exempt.

 

If you have any more queries...pl feel free to ask

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details