is service tax payable on abbetment basis on the whole amount payable to the developer including the cost of undivided share of the land or only on the portion of the amount payable as per construction agreement which may be about 60 % of the total cost of the flat
can a buyer get into tgwo separate agreemnent one for sale of undivided share in gthe land and other one for construction of the apartment and pay service tax only on consgtruction portion
thanks in advance
Abatement is given on complete value.
You can enter into separate contracts if it is possible to segregate both i.e land cost and construction cost
However
The Hon’ble Court struck down the levy of Service Tax on such construction service provided by builders where value of land is included in the consideratio
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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