Hello Everyone ! As we all know Joint Development Agreement (JDA) is a complex issue. For the known fact that in a JDA landowner and builder enter into a joint venture and share the constructed area in agreed proportion. I would like to know under such circumstances who would be liable to pay the service tax ? In a recent judgement it was held that service tax would be applicable on the JDA and builder would be liable to pay service tax (LCS City Makers (P.) Ltd. v. Commissioner of Service Tax, Chennai). But my questions are :
1. Can the builder recover the service tax from the owner ?
2. If yes, then in what manner ?
3. In case where a builder has hired a contractor, who would be liable to pay the service tax - Builder or Contractor ?
4. Where there is no explicit amount for the project construction in the JDA, how would the service tax be calculated ?
Answers would be much appreciated. Thanks in anticipation.
CAclubindia
