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I have little doubt regarding the service tax applicability on construction business.
1) Is there an option with builder to go with Notification 26/2012 @ 75% or 70% abatement on gross value including the value of the land. OR
2) With notification 24/2012 wherein as per Rule 2A(i) or 2A(ii)
As there are two business models in this industry whereby
1) Builder will sale undivided share in land to buyer and enter into construction agreement on the same.
2) Builder will enter into agreement for sale on the completion of construction and collecting installment from the buyer at predetermined intervals.
My questions are :
1) Do i have an option as builder to chose notification in 24 or 26 ?
2) On the basis of above business models, if the 1st model is in existence, as a builder can i opt for notification 24/2012 as such model is purely works contract ?
3) And if 2nd model is in existence, can as builder i opt for notification 26/2012, as its agreement for sale including land also for which my Gross Revenue charged would include Land value also ?
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