Who Pays Service Tax?, Service Tax

[Venugopal KS]

In a JDA for land development who has to pay Service Tax on the flats given to the landowner--The Developer or Landowner?

Posts / Replies

[Himansu Sekhar]

The developer, Board has issued a circular in this regard.

[Gorantla Bhaskar Rao]

Dear sir,

Handing over of flats to Land Owner is treated as service provided by Developer to Land owner and hence service tax is liable to be paid by Developer. I endorse the views of shri Himanshu ji.

[Himansu Sekhar]

Thank you sir

[Venugopal KS]

I thank both the contributors for their clarification. Here a builder/developer is trying to cheat me.

[KASTURI SETHI]

Ultimately indirectly burden is on consumer.

[Venugopal KS]

In case the landowner does not sell these flats but holds them on for himself will that change the situation in any way?

[Ganeshan Kalyani]

I agree with Sri Kasturi Sir ' view. Ultimately the tax burden in on the customer.

[Himansu Sekhar]

Even if the landowner keeps the flat, the developer will pay the tax

[Ganeshan Kalyani]

I agree with Sri Himansu Sir 's view.

[Himansu Sekhar]

Thank you sir