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Service tax applicable ?

Paresh Dholu (Chartered Accountants) (393 Points)

10 March 2014

Hello Experts.....

one of my client (developer) is selling NA* plot after developing basic infrasture like water,light,road,gate,clubhouse (common facility) etc...

now my question is whether service tax is applicable on such developer and if yes what rate ? and how to calculate it ?

*note : first he has purchased agriculture land then he has converted it as NA

please reply

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2 Replies

Sunil Kumar (Indirect Taxation ) (1246 Points)
Replied 10 March 2014

The given case is provided under declared service. If your client receives the payment on completion stage basis then it amount to service and servietax will levied and if your client first develop the property and after that enter in to sale. Then it amount to sale of immovable property and no service tax will applicable as it is not a service.

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Paresh Dholu (Chartered Accountants) (393 Points)
Replied 12 March 2014

amount not charged on completion stage... it is NA residential plot and client sell said plot simultaneously he developed basic common infrastructure.