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Service Tax - Setting Up and Operation of An Educational Institution
M/s CHOICE ESTATES AND CONSTRUCTIONS LTD Vs COMMISSIONER OF CUSTOMS,
CENTRAL EXCISE & SERVICE TAX, COCHIN
Service Tax – Revenue sharing agreement between Appellant-Company and Society - setting up and operation of an educational institution – formation of third entity “partnering person” – Construction of Civil Structure – Renting of Immovable Property - Construction of Civil Structure would entail Services of Architect, Engineer etc.
- HELD – CBEC in Circular dated 13.12 2011 have clarified that when arrangement is under unincorporated partnership/ joint / collaboration basis, then service provided by each of the person is liable to Service Tax.
- Therefore, in the present case, applicant-a person under the meaning of Section 65 B(37)(iii)] if providing services to another person i.e. “partnering person”, who is a separate person in terms of Section 65B(37) (VII) ibid, will be liable to Service Tax
- In this case civil structure is not intended for sale and further, no amount shall be received by the applicant before issuance of completion certificate by the competent authority.