Valuation of Land in Case of Commercial Complex, Service Tax

[Arif Kathiria]

Dear Sir,

My Client is engage in business of Construction of Commercial Complex, Sales Agreement for shops and godowns were made during the period 01-04-2015 to 30-06-2017.

Value of Land for valuation purpose for service tax can be excluded ?

Posts / Replies

[KASTURI SETHI]

If Service Tax is paid by claiming abatement of 70% from the gross receipt (consideration) as per serial no. 12 of Notification No.26/12-ST dated 20.6.12 as amended, the value of land will be included in the gross amount charged. If abatement is not claimed, the value of land, will not form part of taxable value.

Also go through Rule 2 A of Service Tax (Determination of value) Rules, 2006 as amended from time to time up to 13.4.2016.