A ltd entered into a contract with B Ltd whereby A Ltd will develop a housing project on the land owned by B Ltd under the brand name of A Ltd.
Entire cost of the project will be met by A Ltd and it also take booking from the prospective buyers in its own name.
Upon completion B Ltd will execute the sale/coveyance deed in favour of the buyer.
B Ltd will be paid consideration in money by A Ltd for development rights.
Now my query is
1) whether the transaction between A and B is taxable under service tax
2) whether A Ltd is entitled to avail abatement of 75% under notification 26/2012. would it be denied on the ground that the land is not owned by it
CS Saju Philip
CAclubindia
