Service Tax
Vijay Goyal
(Querist) 04 April 2010
This query is : Resolved
In Budget 2010-11 Serivce Tax Imposed on - "In the "Construction of Complex Services", It is being provided that unless the rntire consideration for the property is paid after the completion of construction (i.e. after receipt of competion certificate from the competent authority), the activity of construction would be deemed to be a taxable service provided by the builder/ developer/ promoter to the prospective buyer and the service tax would be charged accordingly."
My point is :
1. What is the construction of complex services ?
2. Is it regarding the impose of service tax to any job done by the builder before the sale of propery(i.e. registry of such property).
3. Is serive tax imposed on registry value of any property.
Please help me to solve my problem.
Thanking you.
soumitra basu
(Expert) 04 April 2010
If the promoter/builder is selling the flat after receiving of completion of consutruction that shall amount to sale of flats not chargeable to service tax. But, if the promoter/builders execute the agreement before the construction that will amount to service.
Service Tax is not on the registry value but on the deed value and excluding the land value of the property.
Adv.Shine Thomas
(Expert) 09 April 2010
Please visit-http://www.infodriveindia.com
tarun goyal
(Expert) 10 April 2010
the advice given by both the experts is correct.
