Plc charges in case of construction

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