TaxTMI 
TaxTMI 
In a JDA for land development who has to pay Service Tax on the flats given to the landowner--The Developer or Landowner?
Who Pays Service Tax?
27 Jan 2018 
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Service tax liability: developer must pay when flats are handed to landowner; ultimate incidence falls on consumers.
The handing over of flats to the landowner under a joint development agreement is treated as a service provided by the developer to the landowner; accordingly, the developer is liable to pay service tax on those flats, and this liability remains even if the landowner retains the flats for personal use, although the economic burden typically falls on consumers. (AI Summary)
The handing over of flats to the landowner under a joint development agreement is treated as a service provided by the developer to the landowner; accordingly, the developer is liable to pay service tax on those flats, and this liability remains even if the landowner retains the flats for personal use, although the economic burden typically falls on consumers. (AI Summary)