Service tax on villas
This query is : Resolved
16 August 2011
My Client is a Villa Constructor/builder.
He buys land makes it into plots gets Govt approval and then he sells the villas to the prospective customers. He enters into an agreement to sell the land and also a construction contract to construct the villa. He appoints a contractor to construct the villas as per the drawings given by the builder. once the villas are completed, my client the builder sells/registers the land along with the building on it. Each villa owner enters into a seperate agreement. All the villa owners have to share the folloing in common. The Street Lamps, Security, Maintenance of the streets, treated water supply,electricity from Generator (when BESCOM supply fails) and other facilities.
The Number of villas are more than 15. In such a circumstance will service tax be applicable on construction of Villas. Kindly let me know your opinion.
Regards
Gurushankar prasad
He buys land makes it into plots gets Govt approval and then he sells the villas to the prospective customers. He enters into an agreement to sell the land and also a construction contract to construct the villa. He appoints a contractor to construct the villas as per the drawings given by the builder. once the villas are completed, my client the builder sells/registers the land along with the building on it. Each villa owner enters into a seperate agreement. All the villa owners have to share the folloing in common. The Street Lamps, Security, Maintenance of the streets, treated water supply,electricity from Generator (when BESCOM supply fails) and other facilities.
The Number of villas are more than 15. In such a circumstance will service tax be applicable on construction of Villas. Kindly let me know your opinion.
Regards
Gurushankar prasad
16 August 2011
The villa whether individual buildings is important. Do they also have separate plan sanctions. If so then there may be no liability. Case law of Marvel supports this.
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