Construction service
This query is : Resolved
23 April 2013
Dear expert,
whether charges collected for transfer of flat under construction is liable to service tax?
whether charges collected for transfer of flat under construction is liable to service tax?
24 April 2013
if you purchased a under construction flat and then sold it on higher prices no service. but income tax will be charged.
if you are the developer of that house, then situation has to be check whether you asking from point of view of a whole complex developer or an individual etc.
if you are the developer of that house, then situation has to be check whether you asking from point of view of a whole complex developer or an individual etc.
25 April 2013
hi vikas,
in case of builder who provide service of construction of residential complex. builder starts collecting demand for each slab and in that case if a person needs to cancel the flat and other person is ready to buy flat under construction then builder charges transfer charges to first person. i am asking in that case whether transfer charges are applicable to service tax to builder?
in case of builder who provide service of construction of residential complex. builder starts collecting demand for each slab and in that case if a person needs to cancel the flat and other person is ready to buy flat under construction then builder charges transfer charges to first person. i am asking in that case whether transfer charges are applicable to service tax to builder?
26 April 2013
whether Service Tax is leviable on such transfer charges under head Real Estate Agent Service or not?
This issue has been resolved by Honorable CESTAT New Delhi in case of M/s Ansal Housing & Construction Versus Commissioner of Service Tax; New Delhi-2011-TMI-213038 wherein it was held that the contention of the revenue to treat the administrative charges/transfer charges as a consideration received towards the service rendered in capacity of Real Estate Agent is not sustainable.
Apart from this, the same view was taken in case of Puravankara Projects Ltd. vs. CST, Banglore-2010(18) STR 7 (Tri.- Bangalore) wherein it was held that Real Estate Agent is a person who is engaged in rendering any service in relation to, among other, sale of real estate. However, in the given case, the person who has entered in to the agreement with appellants for purchasing flats under construction and paying periodical consideration is actually selling ownership rights in flats to other buyer. Developer of flats in between this has no role to play. Though, the developer of flats collects a charge in such transfer of owner ship of flats as per the agreements with the prospective buyer which cannot be considered as a consideration received towards any service rendered by the developer of flats as real estate agent. Hence the same is not taxable.
Hope the information will assist you.
This issue has been resolved by Honorable CESTAT New Delhi in case of M/s Ansal Housing & Construction Versus Commissioner of Service Tax; New Delhi-2011-TMI-213038 wherein it was held that the contention of the revenue to treat the administrative charges/transfer charges as a consideration received towards the service rendered in capacity of Real Estate Agent is not sustainable.
Apart from this, the same view was taken in case of Puravankara Projects Ltd. vs. CST, Banglore-2010(18) STR 7 (Tri.- Bangalore) wherein it was held that Real Estate Agent is a person who is engaged in rendering any service in relation to, among other, sale of real estate. However, in the given case, the person who has entered in to the agreement with appellants for purchasing flats under construction and paying periodical consideration is actually selling ownership rights in flats to other buyer. Developer of flats in between this has no role to play. Though, the developer of flats collects a charge in such transfer of owner ship of flats as per the agreements with the prospective buyer which cannot be considered as a consideration received towards any service rendered by the developer of flats as real estate agent. Hence the same is not taxable.
Hope the information will assist you.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- RCM INVOICING FROM NOV-2024
- Confusion around Form 26QB fields
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- TDS under section and rate of TDS
- GST input on scooter purchased
- TDS under section 194Q and TCS under section 206C
- GST input on car insurance and repairs
- GST input on Diwali gift to employee
- GST input on Mobile Handset
- Material and freight in same invoice
- TDS under section 194J inclusive of reimbursement of expenses
- TDS on Material and Labour in same invoice
- Should I be worried about and rectify reporting Jan,Feb ,March 2024 foreign salary in schedule FA?
Trending Online Classes
CAclubindia
