Service Tax on Construction

[CABALRAM PANDEY]

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.

[Brijesh Verma]

1. Value of similar flats sold nearest to the date when LDR transferred - will be the value

2. ST to be paid in June. POT shall be date of transfer

AI Summary

Value of development rights determines service tax; valuation by comparable flat sales nearest transfer and tax due at transfer.
Value of development rights for service tax is the sale price of similar flats sold nearest the date of transfer of the land development right; service tax is payable at the time of that transfer, with the point of taxation being the transfer date.