Service tax on construction of flats

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 May 2013 DEAR EXPERTS

IF THE MEMBERS OF THE SAME FAMILY CONSTRUCT THE COMPLEX AND FLATS FOR SALE ON THEIR JOINT LAND WITHOUT ENGAGING ANY BUILDER OR CONTRACTOR. WHAT IS THE APPLICABILITY OF SERVICE TAX.

FURTHER IF THEY RECEIVE ONLY BOOKING CHARGES IS THE SERVICE TAX ATTRACT ON SUCH ADVANCE / BOOKING CHARGES.

THANKS IN ANTICIPATION. PLEASE REPLY AT THE EARLIEST.

CA Vikas Acharya

CA Vikas Acharya (Expert)
Follow

19 May 2013 if any advance received before completion of construction then such construction for sale will be:
liable to service tax on the advance amount.
- section 66E(b) of service tax..

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

07 July 2013 If you sale the finished flats and do not accept any advance during construction from any person except loan from bank or other agency then no ST is applicable.

Upgrade to CAclubindia Pro. Subscribe Now!