TaxTMI 
TaxTMI 
Leviability of Service Tax on land developers
20 Dec 2006 
2 Replies 
1681 Views Asked by
Service tax on land development: selling developed plots is not taxable; external contractors may create taxable receipt depending on facts.
Selling developed plots is a sale, not a taxable service, so a developer who only sells plots after performing land levelling and road construction is not liable to service tax; if an external contractor performs site formation or related works, whether the developer is the recipient of a taxable service depends on the factual arrangement, since one cannot provide a taxable service to oneself. (AI Summary)
Selling developed plots is a sale, not a taxable service, so a developer who only sells plots after performing land levelling and road construction is not liable to service tax; if an external contractor performs site formation or related works, whether the developer is the recipient of a taxable service depends on the factual arrangement, since one cannot provide a taxable service to oneself. (AI Summary)
Is service tax leviable on land developers who are engaged in selling plots after land levelling, road construction etc.