Service tax on builders abatement

Here is my case,

There is a Firm, carrying on business of construction of residential properties. The land on which construction is going on is in name of Partners.  Now, a summon has been issued on the said firm.
Officer argues, that abatement of 75% is not aplicable as land is not owned by firm. He says that "if land is not cost to firm, then how can it recover from customers"....

He wants proof that firm is rightfull owner, then only abatement of 75% else, it will be 67%

I want opinion.......

Is there any provision or understanding in service tax law, that Land should be owned by Firm to get abatemnent of 75%....

Replies (4)

It is a serious matter and requires in depth study of the case, therefore, I would suggest you to consult an expert in this regard so that it can be understood as to who owns the land; when the land rights are relinquished from the owner; when it passes on to the buyer; etc.

cost of land is not inclusive in bill then abatement will be 67%.You have to prove that land is owned by firm. as land is registered on partner's name. The matter is complicated.

abatement

Read more at: /forum/service-tax-on-builders-abatement-242719.asp#.UUB0RFIhDIU
abatement

Read more at: /forum/service-tax-on-builders-abatement-242719.asp#.UUB0RFIhDIU

In my opinion, the ownership of the land is not important.

 

The notification only says that 75% abatement if the cost of the land is included. You will need to defend your case accordingly. The higher abatement is given for land, irrespective of it's owner, because consideration incude cost of land. 

 

Regards,

tax2001-it @ yahoo.com

I thank all of you...

I am defemdinmg this case, as land ownership is not a case in any way.

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