Who Pays Service Tax?

[Guest]

In a JDA for land development who has to pay Service Tax on the flats given to the landowner--The Developer or Landowner?

AI Summary

Developers Must Pay Service Tax on Flats Given to Landowners in JDAs, Even if Retained by Landowners. In a Joint Development Agreement (JDA) for land development, the responsibility to pay service tax on flats given to the landowner falls on the developer. This is supported by a circular from the relevant board, as discussed in a forum with multiple contributors agreeing on this point. Even if the landowner retains the flats instead of selling them, the developer remains liable for the service tax. Some contributors highlighted that the ultimate tax burden often shifts to the consumer. The discussion also included concerns about potential deceptive practices by builders.