Blogs

HIGH COURT

1. Service tax payable on construction service provided by developer to land owner (Southern Properties & Promoters 2015 (30) S.T.R. 892 (Mad.)

• Background:   Service provider constructing flats under JV with land owner out of which few flats granted to land owner. No service tax paid on flats handed over to land owner citing that no consideration received from land owner. Tribunal ordered for pre-deposit.
• Issue: Whether developer is liable to pay service tax on...

After removing the concept of Education cess (EC) and Secondary & Higher Education cess (SHEC) on taxable services, service providers were not clear about treatment of Cenvat credit lying unutilised in form of Cess which paid on inputs, capital goods and input services.   

To address this issue, the CBEC vide notification no. 22/2015-CE (N.T.) dated 29 October, 2015 amended Cenvat credit provisions to allow the following for payment of service tax:   

1. Credit of EC/ SHEC...