Service tax on builder

Gaurang (Querist) 10 December 2010 This query is : Resolved
In case of valuation of service tax on normal scheme- service tax payable @ 10.3%on (i) gross amount received or (ii)gross amount less material cost & cost of land because it is a not a service provided by the builder.
Which is the correct (i) or (ii), if (ii) is correct than what is the cost of land will deduct, Fair market value of land or cost of construction related to the owner part or any other?

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H.M.Patnaik (Expert) 12 December 2010
Answer to your question reg. valuation of taxable services in respect of a "Construction of Residential Complex under Sec. 65(30a)" is provided under " The service Tax( Determination of value ) Rules, 2006 . However, Only the Service component as detrmined under the said rules is exigible to Service Tax.