TaxTMI 
TaxTMI 
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
Servicetax on landowner share flat
29 Oct 2013 
5 Replies 
14089 Views Asked by
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. (AI Summary)
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. (AI Summary)