Servicetax on landowner share flat

[rama krishna]

Sir,

If any buyer purchasing the flat of land owner share, is the service tax is to be paid by buyer or not?

 

Regards

Ram

[Brijesh Verma]

Who is taking advance? The actual landowner or Builders?

[rama krishna]

Landowner.  Buyer purchased the flat from the Land owner in Nov2012, when the construction is going on. At the time of buying, Builder or Land owner not told any thing on the Service tax / VAT.  Flat was purchased based on the fixed amount.

The project was started in July 2010 and there was JDA  between Builder and Land Owner. In the JDA

the flats falling to the share of each of the Landowners and the Developer/Builder have been clearly listed out.

In Nov2012, buyer had the sale agreement between buyer and landowner. Also Construction agreement. between landowner,builder and buyer. 

All the cash transactions will done through cheque in favour of Landowner only.

Now buyer going for registration, Land owner asking the Service tax on flat. 

Regards

Ram

 

[Rajesh Sharma]

The buyer has to pay ST on the purchase value from the landowner and the landowner will deposit the same in the govt account. But agree that who knows the landowner is depositing the same in the govt account or not. You can do one thing, ask for the landowner to provide his service tax registration number or take receipt from him and that receipt must have service tax registration number. That will be a good proof for you. Whether the landowner is registered in service tax department or not can be known online. If he gave you registration number you can forward the same and will let you know. 

[Mritunjay Kumar]

Land owner can not ask for Service tax as no service has been provided by him to the buyer. There is only sale and purchase agreement between the buyer and Land Owner.

Service tax can be demanded by the Builder, if any, and only after seeing into the stipulations mentioned in the second agreement entered into between buyer, Landowner and Builder. 

[PAWAN AGARWAL]

Respected Professional

In respect of Real Estate Service tax implication,I want to ask,The flat which is being alloted by developer/bulder to landowner as per development agreement is sold by land owner to other buyer during construction period and even advanced is received by landowner.Is landowner liable to charge service tax on advance payment received and even developer/builder has asked for service tax from landowner,can this service tax paid by land owner can be adjusted with service tax collected from buyer ?????

Regards

Pawan Agarwal

09830606463(Kolkata)

AI Summary

Service tax on landowner share flats: liability depends on whether the transaction is a taxable service under the JDA. Whether service tax applies to purchase of a landowner's allotted flat depends on which party provided a taxable service and the contractual structure. One view advises buyer pays service tax to the landowner who must deposit it and furnish registration/receipt evidence. An alternate view states a straight sale from landowner is not a service, so service tax cannot be charged by the landowner unless the JDA or developer's role creates a taxable real estate service; the developer may be the liable service provider.