Service tax on real estate transaction
This query is : Resolved
06 February 2008
A ltd is land owning company. Company recd licence for development of plot. Before development,demarcation company has entered into agreement to sell with B Ltd. for sale of 80 % plots. B Ltd. has given part consideration for this with a understanding that he can nominate any other person. After this agreement B Ltd. has entered into agreement with individual buyer for purchase of flat.
B ltd received his profit and money (which he has given to A Ltd.) and he nominate to individual buyer.
A ltd. will directly register the plot in the name of individual buyer.
Now my question is that Whether B Ltd. is liable for service tax on profit earned by him above ?
Whether he will be treated as Service Tax Agent ?
B ltd received his profit and money (which he has given to A Ltd.) and he nominate to individual buyer.
A ltd. will directly register the plot in the name of individual buyer.
Now my question is that Whether B Ltd. is liable for service tax on profit earned by him above ?
Whether he will be treated as Service Tax Agent ?
06 February 2008
1.If the agreements are only for purchase and sale of plots, where is the question of service tax?
2. When B is not the owner of the plots, how does B enter into agreement with individual buyer? In wha capacity?
2. When B is not the owner of the plots, how does B enter into agreement with individual buyer? In wha capacity?
06 February 2008
SERVICE TAX IS LEVIED ON PROVIDING ANY TAXABLE SERVICE IN TERMS OF SERVICE TAX ACT.PL. REFER below website for details AS TO WHAT IS A TAXABLE SERVICE.THERE ARE AT PRESENT 105 TAXABLE SERVICES UNDER SERVICE TAX ACT.
www.servicetax.gov.in
B LTD AS UNDERSTOOD FROM YOUR QUERY MUST HAVE UNDERTAKEN SALE OF PLOTS WITH A POWER OF ATTORNEY FROM A LTD. TO SELL PLOTS TO BUYERS AS THE OWNER IS A LTD.
SO B LTD. WHATEVER IT EARNS IS LIABLE UNDER INCOME TAX ACT.NOT UNDER SERVICE TAX ACT.
R.V.RAO
www.servicetax.gov.in
B LTD AS UNDERSTOOD FROM YOUR QUERY MUST HAVE UNDERTAKEN SALE OF PLOTS WITH A POWER OF ATTORNEY FROM A LTD. TO SELL PLOTS TO BUYERS AS THE OWNER IS A LTD.
SO B LTD. WHATEVER IT EARNS IS LIABLE UNDER INCOME TAX ACT.NOT UNDER SERVICE TAX ACT.
R.V.RAO
07 February 2008
IF B IN ANY WAY DOING A SORT OF MARKETING THEN HE MAY BE COVERED UNDER SERVICE TAX UNDER BUSINESS AUXILIARY SERVICES
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Regis.
- Inventory of finished goods
- Disallowance of Section 43B(h) to sez units
- Tax on capital gains revoked us 54f
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Applicability of Ind As to associate of associate
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- HSN Details in IFF/GSTR-1 & in GSTR 9
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
