Service tax on landlord share

This query is : Open

v yadagiri reddy (Querist)
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16 August 2013 1. Does developers has to pay service tax on landlord share? if yes, when service tax is to be collected or remitted?

2. If the landlord sold his share before obtaining completion certificate then what is the value of taxable service on which developer has to pay service tax?

CA Suresh Jain

CA Suresh Jain (Expert)
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17 August 2013 The correct answer could only be given only after going through the joint development agreement etc. which specifies the relationship of land lord and developers and the mode of transfer of landlord's share etc.

v yadagiri reddy

v yadagiri reddy (Querist)
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17 August 2013 Good Morning Mr. Jain,

1. The relationship between landlord & developers is
Developer's share : 56%, i.e. 17 flats
Landlord's share: 44%, i.e. 13 flats

2. The developer transfer landlord's share of flats after completion of work.

But before completion of work, the landlord sold one semi finished flat towards his share to a buyer.

Now the question is whether developer has to pay service tax on the value of semi finished flat i.e as per sale deed or on the full value of the semi finished Flat sold i.e. as per Sale Agreement.

Let me know Mr. Jain if you want any further details.

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