Related Service Tax Notification

[Jasbir Uppal]

Dear Sir, 

Kindly confirm the related notification as per which Service tax applicable on amount received by builder through civil court settlements due to dispute between builders and pramoters 

J.S. Uppal 

 

[Vijay kumar]

Dear Sir, the query is not clear. Plain reading of the query indicates that there is no service involved in as much as the amount was received on account of settlement by a court of law. If u r looking at the liability of service tax on the builder/promoter which has not been paid so far, then the relevant provisions under Construction of residential/commercial complex service have to be looked into. The period involved is also important. Pl elaborate your query.

[YAGAY and SUN]

Please put more clarifications and facts to query to enable us to understand it and revert to you.

AI Summary

Service tax applicability may not extend to court-ordered settlement amounts; assess underlying construction-service liability and relevant period. Whether service tax applies to amounts received by a builder through civil court settlements is unclear; settlement receipts may not be taxable as they arise from court-ordered compromise rather than payment for a service. However, if the underlying dealings involved taxable construction activity, potential liability under Construction of Residential or Commercial Complex Service and the relevant tax period must be examined; additional factual clarification is required to determine exposure.