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Service tax applicable ?

Queries 459 views 2 replies

Paresh Dholu

Chartered Accountants

393 Points Joined February 2010

Hello Experts.....

one of my client (developer) is selling NA* plot after developing basic infrasture like water,light,road,gate,clubhouse (common facility) etc...

now my question is whether service tax is applicable on such developer and if yes what rate ? and how to calculate it ?

*note : first he has purchased agriculture land then he has converted it as NA

please reply

Replies (2)

Sunil Kumar

Indirect Taxation

1246 Points Joined May 2012

The given case is provided under declared service. If your client receives the payment on completion stage basis then it amount to service and servietax will levied and if your client first develop the property and after that enter in to sale. Then it amount to sale of immovable property and no service tax will applicable as it is not a service.

Paresh Dholu

Chartered Accountants

393 Points Joined February 2010

amount not charged on completion stage... it is NA residential plot and client sell said plot simultaneously he developed basic common infrastructure.