Reg. service tax change for under construction property

Hi,

I am afraid to tell that your understanding is not entirely correct.

The construction services generally include the value of land, materials consumed/used while construction of the building and the services in the nature of construction by way of labours, etc.

Thus, by mere fact that the value of land is separately mentioned does not warrant that the Service tax would be chargeable @ 12.36% on the total amount charged minus value of land as per agreement.

You may refer to Rule 2A of the Service Tax (Determination of Value) Rules, 2006 for your reference.