Dear All
Greetings of the day!
Just Please make us clear the following point:-
1. Date of Development right is given in Jan 2013……and flats to be transferred in May 2016
Now, Value of Development right will be equivalent sale price of flats booked nearby Jan 2013 or Value of Land.
2. Service tax shall be paid in feb 2013 or June 2016
Please give us the precise answer, language of service tax law is not clear in this regard.
Service Tax on Construction: Value Based on Similar Flats at Development Right Transfer, Payable June 2016 A query was raised regarding service tax on construction, specifically about the valuation and timing of service tax payment for development rights granted in January 2013, with flats to be transferred in May 2016. The question was whether the value should be based on the sale price of similar flats at the time of the development right or the land value, and when the service tax should be paid. The response clarified that the value should be based on similar flats sold nearest to the date of the development right transfer, and the service tax should be paid in June 2016, with the point of taxation being the date of transfer. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
