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Q. > Please Help: Service Tax on PLC charges charged on Sale of Plots
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1202 views • Question added Jul 01, 2014 • Service Tax • By Saurabh Aggarwal , CA , North West Delhi


If builder company charged PLC charges on Sale of Plots, will the service tax applicable on PLC and at what rate

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Sagar L.

03-Jul-2014 , 10:38:38 am

Service tax applicable @ 12.36%

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Manish Kr.

13-Jul-2014 , 01:56:09 pm

Two Situations 1. Where the consideration for PLC Charges is not included in the value of construction services and is charged separately, the service shall be deemed to be a different service than the service of construction under Section 66E(b). The gist of taxability of this service can be seem from pre negative list regime Section 65(105(zzzzu). Consequently the services will be charged @ 12.36%. 2. However when the consideration is paid alongwith the construction services invoice. The same shall be covered under the incidental services of construction services under Section 66B(e). Also when the services bear no mention in the invoices, the same can be treated as Free Services ie non taxable Services. Anyways if the PLC Charges are still mentioned in the invoices alongwith consideration amount, the same shall be liable to service tax @ 12. 36% - Abatement of 75 %. Effective Rate being 3.09%

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Saurabh Aggarwal

21-Jul-2014 , 12:40:53 pm

Request to support with the Case Laws which can support that PLC on Plots if charged separately is applicable.

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Saurabh Aggarwal

13-Aug-2014 , 02:42:24 pm

Is there any notification for charging of service tax on PLC

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