In circular 151/2/2012 it was made clear, that, for the period after 01/07/2010, construction service provided by the builder/developer is taxable in case any part of the payment/development rights of the land was received by the builder/ developer before the issuance of completion certificate and the service tax would be required to be paid by builder/developers even for the flats given to the land owner.
Service tax is liable to be paid by the builder/developer on the ‘construction service’ involved in the flats to be given to the land owner, at the time when the possession or right in the property of the said flats are transferred to the land owner by entering into a conveyance deed or similar instrument(eg. allotment letter).
In the above circular it was clarified that sale of land to builder was not a taxable service.
Builder was only liable to collect service tax from you and deposit the same to government for construction services provided.
No other than this direct and indirect tax no other tax is required.
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