Dear sir, Mr. X is a land owner of 10Acres. X Promoted the project being a laying consiting of 100 Plots and got Layout approval from necessary authorities. M/s. ABC Pvt. Ltd. entered into an agreement with Mr. X for Developing, Marketing & Selling of above Layout [Plots]. The agreement says that M/s. ABC Pvt. Ltd. is authorized to deal the customer on end-to-end basis and can collect full consideration from Plot Buyer. All Marketing, Advt., etc., should be born by M/s. ABC Pvt. Ltd. It is the responsibility of M/s.ABC Pvt. Ltd. to complete the development of layout such as Laying Blacktop Roads, Sewage, Drainage, Electricity, Compound wall, Water Tank etc. to ensure the timely completion of plot [piece of land] development for customer. On registration, the sale deed says that Land belongs to Mr.X, Developing by M/s.ABC Pvt. Ltd., and will register the document in favour of Customer / Plot Buyer. X have no responsibility of development activities proposed in Sale deed. On registration of Plot, Mr.X will get his part of sale consideration for land from M/s. ABC Pvt. Ltd. From the above, It is clear that, the land development agreement is between ABC Pvt. Ltd. and the Plot Buyer. Mr.X doesn't accept to be a part of development activity. He is getting only consideration for Land as per the agreement entered with M/s. ABC Pvt. Ltd. It is M/s. ABC Pvt. Ltd. which collects full sale consideration [for both Land Cost & Development Cost] from the Plot Buyer and pay Mr.X only Land Cost as agreed before. So, Mr.X is in development agreement neither with M/s. ABC Pvt. Ltd. nor with the Plot Buyer. The sale deed is also saying that Land owner [Mr.X] is getting consideration for Land amount only. It further says that, M/s. ABC Pvt. Ltd. is getting consideration only for development activities. In case of Above, Please guide me by answering the following: 1. Whether M/s. ABC Pvt. Ltd. liabile to Pay Service Tax? 2. If, answer to Question No. 1 is Yes, under which section he is liabile to pay service tax and on What is the Rate of Tax? 3. As M/s. ABC Pvt. Ltd. is entering Development agreement with individual plot buyers through Sale Deed, is Service Tax Exempted? Please mention case laws / notifications / circulars (available if any) with your answer. Thanks in Advance!!
Read more at: /forum/service-tax-on-land-development-161804.asp#.UMjVe6xBr9UDear sir, Mr. X is a land owner of 10Acres. X Promoted the project being a laying consiting of 100 Plots and got Layout approval from necessary authorities. M/s. ABC Pvt. Ltd. entered into an agreement with Mr. X for Developing, Marketing & Selling of above Layout [Plots]. The agreement says that M/s. ABC Pvt. Ltd. is authorized to deal the customer on end-to-end basis and can collect full consideration from Plot Buyer. All Marketing, Advt., etc., should be born by M/s. ABC Pvt. Ltd. It is the responsibility of M/s.ABC Pvt. Ltd. to complete the development of layout such as Laying Blacktop Roads, Sewage, Drainage, Electricity, Compound wall, Water Tank etc. to ensure the timely completion of plot [piece of land] development for customer. On registration, the sale deed says that Land belongs to Mr.X, Developing by M/s.ABC Pvt. Ltd., and will register the document in favour of Customer / Plot Buyer. X have no responsibility of development activities proposed in Sale deed. On registration of Plot, Mr.X will get his part of sale consideration for land from M/s. ABC Pvt. Ltd. From the above, It is clear that, the land development agreement is between ABC Pvt. Ltd. and the Plot Buyer. Mr.X doesn't accept to be a part of development activity. He is getting only consideration for Land as per the agreement entered with M/s. ABC Pvt. Ltd. It is M/s. ABC Pvt. Ltd. which collects full sale consideration [for both Land Cost & Development Cost] from the Plot Buyer and pay Mr.X only Land Cost as agreed before. So, Mr.X is in development agreement neither with M/s. ABC Pvt. Ltd. nor with the Plot Buyer. The sale deed is also saying that Land owner [Mr.X] is getting consideration for Land amount only. It further says that, M/s. ABC Pvt. Ltd. is getting consideration only for development activities. In case of Above, Please guide me by answering the following: 1. Whether M/s. ABC Pvt. Ltd. liabile to Pay Service Tax? 2. If, answer to Question No. 1 is Yes, under which section he is liabile to pay service tax and on What is the Rate of Tax? 3. As M/s. ABC Pvt. Ltd. is entering Development agreement with individual plot buyers through Sale Deed, is Service Tax Exempted? Please mention case laws / notifications / circulars (available if any) with your answer. Thanks in Advance!!
Read more at: /forum/service-tax-on-land-development-161804.asp#.UMjVe6xBr9UDear sir, Mr. X is a land owner of 10Acres. X Promoted the project being a laying consiting of 100 Plots and got Layout approval from necessary authorities. M/s. ABC Pvt. Ltd. entered into an agreement with Mr. X for Developing, Marketing & Selling of above Layout [Plots]. The agreement says that M/s. ABC Pvt. Ltd. is authorized to deal the customer on end-to-end basis and can collect full consideration from Plot Buyer. All Marketing, Advt., etc., should be born by M/s. ABC Pvt. Ltd. It is the responsibility of M/s.ABC Pvt. Ltd. to complete the development of layout such as Laying Blacktop Roads, Sewage, Drainage, Electricity, Compound wall, Water Tank etc. to ensure the timely completion of plot [piece of land] development for customer. On registration, the sale deed says that Land belongs to Mr.X, Developing by M/s.ABC Pvt. Ltd., and will register the document in favour of Customer / Plot Buyer. X have no responsibility of development activities proposed in Sale deed. On registration of Plot, Mr.X will get his part of sale consideration for land from M/s. ABC Pvt. Ltd. From the above, It is clear that, the land development agreement is between ABC Pvt. Ltd. and the Plot Buyer. Mr.X doesn't accept to be a part of development activity. He is getting only consideration for Land as per the agreement entered with M/s. ABC Pvt. Ltd. It is M/s. ABC Pvt. Ltd. which collects full sale consideration [for both Land Cost & Development Cost] from the Plot Buyer and pay Mr.X only Land Cost as agreed before. So, Mr.X is in development agreement neither with M/s. ABC Pvt. Ltd. nor with the Plot Buyer. The sale deed is also saying that Land owner [Mr.X] is getting consideration for Land amount only. It further says that, M/s. ABC Pvt. Ltd. is getting consideration only for development activities. In case of Above, Please guide me by answering the following: 1. Whether M/s. ABC Pvt. Ltd. liabile to Pay Service Tax? 2. If, answer to Question No. 1 is Yes, under which section he is liabile to pay service tax and on What is the Rate of Tax? 3. As M/s. ABC Pvt. Ltd. is entering Development agreement with individual plot buyers through Sale Deed, is Service Tax Exempted? Please mention case laws / notifications / circulars (available if any) with your answer. Thanks in Advance!!
Dear sir, Mr. X is a land owner of 10Acres. X Promoted the project being a laying consiting of 100 Plots and got Layout approval from necessary authorities. M/s. ABC Pvt. Ltd. entered into an agreement with Mr. X for Developing, Marketing & Selling of above Layout [Plots]. The agreement says that M/s. ABC Pvt. Ltd. is authorized to deal the customer on end-to-end basis and can collect full consideration from Plot Buyer. All Marketing, Advt., etc., should be born by M/s. ABC Pvt. Ltd. It is the responsibility of M/s.ABC Pvt. Ltd. to complete the development of layout such as Laying Blacktop Roads, Sewage, Drainage, Electricity, Compound wall, Water Tank etc. to ensure the timely completion of plot [piece of land] development for customer. On registration, the sale deed says that Land belongs to Mr.X, Developing by M/s.ABC Pvt. Ltd., and will register the document in favour of Customer / Plot Buyer. X have no responsibility of development activities proposed in Sale deed. On registration of Plot, Mr.X will get his part of sale consideration for land from M/s. ABC Pvt. Ltd. From the above, It is clear that, the land development agreement is between ABC Pvt. Ltd. and the Plot Buyer. Mr.X doesn't accept to be a part of development activity. He is getting only consideration for Land as per the agreement entered with M/s. ABC Pvt. Ltd. It is M/s. ABC Pvt. Ltd. which collects full sale consideration [for both Land Cost & Development Cost] from the Plot Buyer and pay Mr.X only Land Cost as agreed before. So, Mr.X is in development agreement neither with M/s. ABC Pvt. Ltd. nor with the Plot Buyer. The sale deed is also saying that Land owner [Mr.X] is getting consideration for Land amount only. It further says that, M/s. ABC Pvt. Ltd. is getting consideration only for development activities. In case of Above, Please guide me by answering the following: 1. Whether M/s. ABC Pvt. Ltd. liabile to Pay Service Tax? 2. If, answer to Question No. 1 is Yes, under which section he is liabile to pay service tax and on What is the Rate of Tax? 3. As M/s. ABC Pvt. Ltd. is entering Development agreement with individual plot buyers through Sale Deed, is Service Tax Exempted? Please mention case laws / notifications / circulars (available if any) with your answer. Thanks in Advance!!
Read more at: /forum/service-tax-on-land-development-161804.asp#.UMjVe6xBr9U
Read more at: /forum/service-tax-on-land-development-161804.asp#.UMjVe6xBr9U
Dear sir, Mr. X is a land owner of 10Acres. X Promoted the project being a laying consiting of 100 Plots and got Layout approval from necessary authorities. M/s. ABC Pvt. Ltd. entered into an agreement with Mr. X for Developing, Marketing & Selling of above Layout [Plots]. The agreement says that M/s. ABC Pvt. Ltd. is authorized to deal the customer on end-to-end basis and can collect full consideration from Plot Buyer. All Marketing, Advt., etc., should be born by M/s. ABC Pvt. Ltd. It is the responsibility of M/s.ABC Pvt. Ltd. to complete the development of layout such as Laying Blacktop Roads, Sewage, Drainage, Electricity, Compound wall, Water Tank etc. to ensure the timely completion of plot [piece of land] development for customer. On registration, the sale deed says that Land belongs to Mr.X, Developing by M/s.ABC Pvt. Ltd., and will register the document in favour of Customer / Plot Buyer. X have no responsibility of development activities proposed in Sale deed. On registration of Plot, Mr.X will get his part of sale consideration for land from M/s. ABC Pvt. Ltd. From the above, It is clear that, the land development agreement is between ABC Pvt. Ltd. and the Plot Buyer. Mr.X doesn't accept to be a part of development activity. He is getting only consideration for Land as per the agreement entered with M/s. ABC Pvt. Ltd. It is M/s. ABC Pvt. Ltd. which collects full sale consideration [for both Land Cost & Development Cost] from the Plot Buyer and pay Mr.X only Land Cost as agreed before. So, Mr.X is in development agreement neither with M/s. ABC Pvt. Ltd. nor with the Plot Buyer. The sale deed is also saying that Land owner [Mr.X] is getting consideration for Land amount only. It further says that, M/s. ABC Pvt. Ltd. is getting consideration only for development activities. In case of Above, Please guide me by answering the following: 1. Whether M/s. ABC Pvt. Ltd. liabile to Pay Service Tax? 2. If, answer to Question No. 1 is Yes, under which section he is liabile to pay service tax and on What is the Rate of Tax? 3. As M/s. ABC Pvt. Ltd. is entering Development agreement with individual plot buyers through Sale Deed, is Service Tax Exempted? Please mention case laws / notifications / circulars (available if any) with your answer. Thanks in Advance!!
Read more at: /forum/service-tax-on-land-development-161804.asp#.UMjVe6xBr9U
Read more at: /forum/service-tax-on-land-development-161804.asp#.UMjVe6xBr9U
Dear sir, Mr. X is a land owner of 10Acres. X Promoted the project being a laying consiting of 100 Plots and got Layout approval from necessary authorities. M/s. ABC Pvt. Ltd. entered into an agreement with Mr. X for Developing, Marketing & Selling of above Layout [Plots]. The agreement says that M/s. ABC Pvt. Ltd. is authorized to deal the customer on end-to-end basis and can collect full consideration from Plot Buyer. All Marketing, Advt., etc., should be born by M/s. ABC Pvt. Ltd. It is the responsibility of M/s.ABC Pvt. Ltd. to complete the development of layout such as Laying Blacktop Roads, Sewage, Drainage, Electricity, Compound wall, Water Tank etc. to ensure the timely completion of plot [piece of land] development for customer. On registration, the sale deed says that Land belongs to Mr.X, Developing by M/s.ABC Pvt. Ltd., and will register the document in favour of Customer / Plot Buyer. X have no responsibility of development activities proposed in Sale deed. On registration of Plot, Mr.X will get his part of sale consideration for land from M/s. ABC Pvt. Ltd. From the above, It is clear that, the land development agreement is between ABC Pvt. Ltd. and the Plot Buyer. Mr.X doesn't accept to be a part of development activity. He is getting only consideration for Land as per the agreement entered with M/s. ABC Pvt. Ltd. It is M/s. ABC Pvt. Ltd. which collects full sale consideration [for both Land Cost & Development Cost] from the Plot Buyer and pay Mr.X only Land Cost as agreed before. So, Mr.X is in development agreement neither with M/s. ABC Pvt. Ltd. nor with the Plot Buyer. The sale deed is also saying that Land owner [Mr.X] is getting consideration for Land amount only. It further says that, M/s. ABC Pvt. Ltd. is getting consideration only for development activities. In case of Above, Please guide me by answering the following: 1. Whether M/s. ABC Pvt. Ltd. liabile to Pay Service Tax? 2. If, answer to Question No. 1 is Yes, under which section he is liabile to pay service tax and on What is the Rate of Tax? 3. As M/s. ABC Pvt. Ltd. is entering Development agreement with individual plot buyers through Sale Deed, is Service Tax Exempted? Please mention case laws / notifications / circulars (available if any) with your answer. Thanks in Advance!!
Read more at: /forum/service-tax-on-land-development-161804.asp#.UMjVe6xBr9U
Read more at: /forum/service-tax-on-land-development-161804.asp#.UMjVe6xBr9U
Dear sir,
Mr. X is a land owner of 5 Acres. X Promoted the project being a laying consiting of 100 Plots and got Layout approval from necessary authorities. M/s. ABC Pvt. Ltd. entered into an agreement with Mr. X for Developing, Marketing & Selling of above Layout [Plots]. The agreement says that M/s. ABC Pvt. Ltd. is authorized to deal the customer on end-to-end basis and can collect full consideration from Plot Buyer. All Marketing, Advt., etc., should be born by M/s. ABC Pvt. Ltd. It is the responsibility of M/s.ABC Pvt. Ltd. to complete the development of layout such as Laying Blacktop Roads, Sewage, Drainage, Electricity, Compound wall, Water Tank etc. to ensure the timely completion of plot [piece of land] development for customer. On registration, the sale deed says that Land belongs to Mr.X, Developing by M/s.ABC Pvt. Ltd., and will register the document in favour of Customer / Plot Buyer. X have no responsibility of development activities proposed in Sale deed. On registration of Plot, Mr.X will get his part of sale consideration for land from M/s. ABC Pvt. Ltd. From the above, It is clear that, the land development agreement is between ABC Pvt. Ltd. and the Plot Buyer. Mr.X doesn't accept to be a part of development activity. He is getting only consideration for Land as per the agreement entered with M/s. ABC Pvt. Ltd. It is M/s. ABC Pvt. Ltd. which collects full sale consideration [for both Land Cost & Development Cost] from the Plot Buyer and pay Mr.X only Land Cost as agreed before. So, Mr.X is in development agreement neither with M/s. ABC Pvt. Ltd. nor with the Plot Buyer. The sale deed is also saying that Land owner [Mr.X] is getting consideration for Land amount only. It further says that, M/s. ABC Pvt. Ltd. is getting consideration only for development activities. In case of Above, Please guide me by answering the following:
1. Whether M/s. ABC Pvt. Ltd. has to collect service tax form Buyer?
2. If M/s. ABC Pvt. Ltd. is collecting 25% of service tax means at the rate of 3.09 % of Total sale cosideration with Buyer of the plot, is it ok?
3. What are service tax % for M/s. ABC Pvt. Ltd. , if Sale deed cosideration is for land only, land + metirial only and land + merial + dveloper fee?
4. In Gujarat, there is no Building use permission is given out side the Authority area scheme, so M/s. ABC Pvt. Ltd. can consider it as full developed land and exempt his buyer to pay serive tax as considering the developed property?
Please mention case laws / notifications / circulars (available if any) with your answer. Thanks in Advance!!
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