Liability of ST on landlord's share in construction service, Service Tax

[onkar kumar]

Sir,

 

I have a query as under. A builders makes an agreement with landowner to built an apartment having more than 12 flat . As per agreement some of the flats is to be handed over to landlord after completion of the project and rest is to be sold by builder. I want to know whether there is service tax liability on the flats handed over to the landlord as his share? If yes, at which point of time liability occurs? how the value will be determine?  

Thank You

Posts / Replies

[sanjeev bajaj]

Please refer to circular no. 151/2/2012-ST.  It depends on the facts and agreement.