24 September 2012
A company gets a building constructed through a builder who charges cost Rs 100 + Service Tax Rs 4.12 i.e., total 104.12. Now the company gives the building on rent and charges Service Tax alongwith rental charges say rent Rs 50 + service tax Rs 6.18 @ 12.36%. What is the service tax liability to be paid by the company (i) Rs 6.18 or (ii)Rs 6.18 - Rs 4.12 = Rs 2.06. Kindly give expert advice.
27 September 2012
The credit on construction services have been barred in the definition of input services it self for works contract as well. Therefore 4.12% credit is not available for paying of rental ST as of now.
CAclubindia
