Log in Register

Login to your account

Username *
Password *
Remember Me

Create an account

Fields marked with an asterisk (*) are required.
Name *
Username *
Password *
Verify password *
Email *
Verify email *
Captcha *
View more blog entries

Consult Construction

Consult Us For Construction

SC : Dismisses landowner's SLP against service tax levy on 'construction service' under JDA

Posted by on in Service Tax
  • Font size: Larger Smaller
  • Hits: 493
  • 0 Comments
  • Subscribe to this entry
  • Print
  • Report this post


 

  • SC dismisses SLP by landowner challenging HC order which dismissed writ petition against levy of service tax on construction service under Joint Development Agreement;
  • HC had rejected landowner’s contention that service, if at all rendered by developer, would fall within exempted category u/s 65B(44)(a)(i) of Finance Act, i.e. would constitute merely transfer of title in goods or immovable property by way of sale, gift or in any other manner, since he and his siblings agreed to sell 35% of undivided shares in land and developer agreed to pay a consideration in kind, in the form of constructed area;
  • HC stated that landowner had no locus standi to challenge CBEC Circular No. 151/2/2012-ST dated February 10, 2012 and TRU recommendations dated January 20, 2016 as any person would then be entitled to challenge the levy on ground that manufacturer / dealer will eventually pass on duty burden to ultimate consumer;
  • According to HC, it may be true that after construction, parties may exchange constructed area for undivided share of land, but in whatever manner worded, agreement is for construction of super built-up area and what developer has done is actually service of construction;
  • HC observed, JDA gives rise to a bouquet of rights to developer, one of which is to put up a construction and sell it to third parties alongwith undivided share of land, and those parties certainly avail services of developer as service provider, hence assessee does not stand on a different footing than them : SC
Rate this blog entry:
0
Trackback URL for this blog entry.

Comments

  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest
Guest Friday, 21 July 2017

Like us on facebook

Twitter Feed

ConsultC Session organised by Builders' Association of India on RERA and GST at Mumbai https://t.co/D6bjdqk54I
ConsultC The word is spreading on https://t.co/QI70LPC81h
ConsultC GST - Impact on Projects, Mumbai https://t.co/6vST83thsK

Address

Address:
304, Super Plaza, Sandesh Press Road, Vastrapur, Ahmedabad
Gujarat-380054
Tel:
+91 - 079 - 40032950
E-Mail:
This email address is being protected from spambots. You need JavaScript enabled to view it.
Website:
www.consultconstruction.com

markerFind on Google Maps

Who we are

We are Ahmedabad based professional consulting firm. We are providing various services to Construction, Real Estate and Project Companies in various areas like Indirect Taxation – Service Tax & Multi state VAT consultancy, ERP implementation, Site & Management audit, Designing Tender & other related contractual documents etc.