Sir,
I have a query as under. A builders makes an agreement with landowner to built an apartment having more than 12 flat . As per agreement some of the flats is to be handed over to landlord after completion of the project and rest is to be sold by builder. I want to know whether there is service tax liability on the flats handed over to the landlord as his share? If yes, at which point of time liability occurs? how the value will be determine?
Thank You
Clarification sought on service tax for landlord's flats in builder agreements; liability hinges on agreement specifics. A query was raised regarding the service tax liability on flats handed over to a landlord as part of an agreement with a builder. The builder constructs an apartment with more than 12 flats, some of which are given to the landlord, while the rest are sold. The inquirer seeks clarification on whether service tax applies to the landlord's share, the timing of the liability, and how the value is determined. A response referred to a specific circular, suggesting that liability depends on the agreement's details. (AI Summary)
TaxTMI 
TaxTMI 
