Service tax on landlord allocation

This query is : Resolved

rohit chowdhury (Querist)
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14 June 2013 WE HAVE ENTERED ON A JOINT VENTURE AGREEMENT FOR CONSTRUCTION OF RESIDENTIAL COMPLEX IN WHICH THE LANDLORD AREA IS SOLD BY THE LANDLORD. PLEASE SAY WHAT WILL BE THE SERVICE TAX IMPLICATIONS AND WHO AND HOW THE SERVICE TAX WOULD BE CHARGED AND PAYABLE AND BY WHOM.
IF IT WILL BE THE LIABILITY OF THE DEVELOPER THAN HOW THE DEVELOPER WILL CHARGE AND FROM WHOM i.e from the landlord or the owner of flats of the landlord portion

CA Vikas Acharya

CA Vikas Acharya (Expert)
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15 June 2013 ofcourse the liability is of developer.
now the liability depends on the terms of agreement.
simple rule is, if one is owner of land and constructs building for selling purpose he will charge the tax from the buyers if he is receiving amount before completion.

now if you are only responsible for construction then you will charge only from that landlord as you are not the owner of land.

if you 1st purchase the land and then reselling it after construction then you are the owner and you will charge from the buyers.

it may be possible that different terms are there. taxability will be depend on terms of agreement.

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