TaxTMI 
TaxTMI 
What will be the valuation of Construction Service of area handed over by Developer to Landowner at the time of Completion Certificate or Occupation Certificate??
VALUATION OF CONSTRUCTION SERVICE
10 Jun 2021 
2 Replies 
1838 Views Asked by
Valuation of construction service: deeming one-third as land value challenged as inconsistent with statutory valuation provisions.
Valuation of construction service on transfer of built-up area at Completion/Occupation Certificate involves whether the taxable service equals the sale value of a comparable unit less a deemed land component of one third. One view applies the one third deeming rule to allocate the land portion; another contends this fixed ratio conflicts with valuation provisions because actual land value often exceeds one third, creating a recurring compliance dispute for joint development arrangements. (AI Summary)
Valuation of construction service on transfer of built-up area at Completion/Occupation Certificate involves whether the taxable service equals the sale value of a comparable unit less a deemed land component of one third. One view applies the one third deeming rule to allocate the land portion; another contends this fixed ratio conflicts with valuation provisions because actual land value often exceeds one third, creating a recurring compliance dispute for joint development arrangements. (AI Summary)