Joint venture with land lord

[Guest]

Very specific answer wanted Whether Promoters/Builders works under joint venture with land lord for construction of flats and selling out later are subjected to Services tax taking into consideration the decision of court a) Raheja Construction and b) Megas construction

[Surender Gupta]

Threre are different propositions in different circumstances. However, in general sale of flats are not subject to service tax.

AI Summary

Promoters and builders in joint ventures with landlords typically not subject to service tax for flat sales. A query was raised regarding whether promoters or builders involved in a joint venture with a landlord for constructing and selling flats are subject to service tax, referencing court decisions in Raheja Construction and Megas Construction. The response indicated that while different circumstances may yield different outcomes, generally, the sale of flats is not subject to service tax.