Service tax

Who are you paying the 1Cr to? If the entire amount is to the builder you must pay Service Tax on the entire amount to the builder. If you are making two payments of 71% to land owner and 29% to the builder, then the Service tax is payable to the two parties individually.

Biju R u owner? Then u need to pay for your share only.

As per section 65 (105) of Finance Act, 1994 (hereinafter referred “Act”), any service provided or to be provided to any person, by any other person, in relation to construction of complex would be liable for service tax.

Hence, re-construction undertaken by a society by directly engaging a builder/developer up to 30thJune, 2012 will not be chargeable to Service tax as it is meant for the personal use of the society/its members. Accordingly, developer would not be liable for service tax on services provided for construction of new flats to existing members.

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