Service tax on sale of plots

In case of a firm dealing in real estate business and using the land as stock in trade, is the firm liable to pay service tax??

also, there is no construction done on land and if someone has a valid proof of it do attest it with your reply.

Replies (2)

As per Section 65B (44)

"service" means any activity carried out by a person for another for consideration, and includes a declared service, but shall not include—
(a) an activity which constitutes merely,––

(i) a transfer of title in goods or immovable property, by way of sale, gift or in any other manner; or
(ii) a transaction in money or actionable claim;
(b) a provision of service by an employee to the employer in the course of or in relation to his employment;
(c) fees taken in any Court or tribunal established under any law for the time being in force.

 

In my openion,

In the given transaction, sale of land does not amount to "service" as per definition of service.

Though, any charges/fees in relation to sale of land, by whatever name (except stamp duty / registration fees) shall be liable to service tax.

My request to you being student, if want to clarify certain service tax related issues, please refer education guide available on department website. It is helpful & also will increase knowledge.

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