Building on Leased land, BOOT model
Querist :
Anonymous
(Querist) 01 December 2009
This query is : Resolved
A Charitable Educational Trust wishes to open a school For said purpose Trust leased (for long term) a piece of land.
Further Trust wish to erect a building on same land but due to lack of resources said trust wish to invite any person or body corporate to erect school building and hand it over for for school operation? Can trust do so?
What will be contracts, agreement etc. entered between Trust and body corporate? What are service Tax implications?
Can Build-Own-Operate-Transfer(BOOT) model work in this case?
Raj Kumar Makkad
(Expert) 01 December 2009
BOOT model can be adopted in this situation. The agreement can be made on the basis of mutual agreed terms and it is very simple to draft. Service tax implications shall not be attracted in such case.
