Service tax on builders

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2014 sir my query is if the advance money is received by builders for Rs 1 lac & builder have issued the letter of allotment of Rs 1 crore the the service tax would be levied on on Rs 1 lac or Rs 1 crore ????the builder is engaged in the business of redevelopment ??

Along with the relevant notification

thanks in Advance !!!!!

CA Rajya lakshmi

CA Rajya lakshmi (Expert)
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13 November 2014 Service Tax to be paid only on Rs.1,00,000/- , how can you pay tax on Rs.1 crore when the amount is not credited , Point of taxation rules 2011 clearly state service tax to paid whichever is earlier i.e 1. Receipt of amount 2. service done 3. Tax invoice . As Letter of allotment is not invoice nor it is an agreement and you did not collect the amount no service tax on Rs.1 crore

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Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2014 thanks a lot !!1
But what in case agreement for 1 crore is registered but i had received only 1 lac rupees in that case whether service tax is on 1 lac or 1 crore

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Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2014 in case if there is any notification please let me know