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TMI BlogLiability of service tax - proportionate basisX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, For example two parties say A and B holding two lands of different proportions say for example A 13% and B 87%. A is experinced in construction activity. B has agreed with A for developemnt of land by constructing a commercial building on the said land. Terms were such that after satisfactory completion of building B will register undivided share of land to A to the extent of 37% such th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at both will jointly own the building in the ratio of 50 % and 50%. In such case is 1. is A liable for service Tax 2. If answer to 1 is yes how valuation will be done. - Reply By YASHAVANTH R.M. - The Reply = In my opinion service provider is liable to pay service tax, as per details A will do the construction, it is not clear what will be the % of land construction, after construction it will b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e shared 50% each,since A doing the construction A raise the bill o B on his portion of construction, Service tax is payable by A and valuation is gross amount charged by A to B for construction of his land portion - Reply By Surender Gupta - The Reply = Only a details study of the facts and circumstances would enable to decide the true nature of the transaction, whether it is works contract acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vity or something else. - Liability of service tax - proportionate basis - Query Started By: - CA. Chalapathy Rao Marthy Dated:- 16-12-2007 Service Tax - Got 2 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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