Is service tax applicable on who does the activity of plotting & selling the plot of land with amineties like clube, garden etc. but not constructing the house. Assessee is just doing the activity of the above mention and sell the plot of land. Is the Service tax is applicable, If yes then under which service at which rate. please also suggest is there any exemption/abatement schme is there or not.
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Service tax on plotting of land
Replies (3)
If the person is a real estate agent, there is a special service to that effect. Aldo you can analyse the service of broker/ commission agent.
SInce the above is a service, unless it falls in the negative list or mega exemption list, the same is bound to be taxable.
If the same is merely buying and selling of immovable property, it will not be taxable as transfer of title in property does not constitute service as per the definition of service.
If it is a case of devoper selling plotted developments without residential constructions but with road wall boundry etc by accepting advance money from prospective buyer before completion of scheme...same would be taxable in clause b of s.66E since 1.7.12 and abatement may be claimed under Not 26...would not be taxable prior to 1.7.12.
Thank you CA Rahul.
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