Service Tax Liability

[BT RAVI]

Whether the builder has duty and responsibility to collect service tax from the Land Owners towards their respective share under the Joint Development Agreement?

AI Summary

Builders Must Collect Service Tax from Landowners in Joint Development Agreements, Per Works Contract Service Rules Since 2012. A discussion on a forum addresses whether a builder is responsible for collecting service tax from landowners under a Joint Development Agreement. Participants agree that the builder must pay service tax on construction services provided to landowners, as these services are taxable if any payment or development rights are received before the completion certificate is issued. The discussion highlights that construction services fall under Works Contract Service since July 1, 2012, and relevant notifications should be considered. It is noted that even if Joint Venture agreements predate July 1, 2010, service tax obligations remain applicable.