Service tax applicable on buildings owned under joint-names

Rahim (Businessperson) (460 Points)

01 June 2013  

The Developer and his Wife owns a piece of land jointly where they would be constructing a G+5 Floor Building having 4 Flats on each floor, with Parking Space on the ground floor. Total number of flats will be 4*5=20 Flats.

According to Service Tax Rules/Notification dated 1-07-2010 ST has to be paid @ 3.09% on Basic Sale Price and Car Parking.

The Developers is pf the opinion that since the land is owned jointly by two persons, ST will not be charged as individually the exempted limit is 12 residential units, so jointly it will be 24 units.

Is he correct?