06 March 2017
hi,
i am receiving some apartments from builder as per joint development agreement in another 2-3 months.
i do not intend to sell any of them.
i am aware i am liable for long term capital gain. but builder is saying i need to pay 3.5% service tax within a month of getting possession certificate from him. the value will be based on builtup area i am receiving at guidance value at registrar office.
is it true? thought there is service tax only if i sell my share before construction is complete.
07 March 2017
Since the land belongs to you you need to pay service tax at 15% on 40% value of built up area allotted to you. Service tax applicable if you sell it before completion.
07 March 2017
i am not planming to sell any. yet builder is saying I need to pay 3.5% on value of my share.
it doesn't make sense as I am not planning to sell
08 March 2017
You are getting flat constructed in your land, your builder is liable to pay service tax on such works contract. He is collecting the service tax paid to govt.
CAclubindia
