Service Tax on Construction

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Navin M Patel (Querist)
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13 April 2010 What are the service tax liabilities of company which are doing construction, developing and infrastructure business?

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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13 April 2010 IF YOUR GROSS RECEIPT IS CROSS RS. 10 LACS THEN COMPANY IS LIABLE TO CHARGE SERVICE TAX @10.3%,

SERVICE TAX NOT LIABLE IN THE CASE OF CONSTRUCTION OF ROAD, DAME ETC.

Navin M Patel

Navin M Patel (Querist)
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14 April 2010 Thank you very much for reply...

Suppose the residential project develops in urban area, what is the benefit of sec.80-IB of Income Tax Act., and what is the impact of service tax? Can the firm take service tax credit which paid to the contractor and professional? Give me the date of Service Tax effect.

Please give me all information in step by step.

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CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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15 April 2010 IF YOU NOT CLAIM ABATEMENT OF 67% ON GROSS VALUE THEN YOU CLAIM CENVAT CREDIT.

IF YOU FULL FILL ALL THE CONDITION OF U/S 80IB THEN YOUR PROFIT OF THE SAME PROJECT IS FULLY EXEMPT.

Navin M Patel

Navin M Patel (Querist)
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15 April 2010 Thank you very much.....for reply me....

Please give me the detail of all condition of u/s 80-IB and I am giving you one example below; is it true?

1,00,000/- Received Flat Booking Amt.
10,300/- @10.30% Service Tax Payable

Paid to Contractor
50,000/- Bill Amt.
5,150/- @10.30% Service Tax
55,150/- Total Payment

Now my Service Tax Liability is Rs.10,300 – Rs.5,150/- = 5,150/-

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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15 April 2010 YES, YOU ARE CORRECT

FOR DETAILS OF PROVISION U/S 80IB SEE BELOW LINK
http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2005ITAct/section80ib.htm