17 October 2012
Dear Experts A real estate company charge total amount for flat collectively as - BSP - 25 Lakh (including all charges) OR BSP -20 lakh, Power back up -1Lakh , EDC and IDC - 1Lakh , Car Parking - 1 Lakh , PLC -1 Lakh - Total -25 Lakh My queries are what is rate of Service tax on parts other than BSP Do there any objection to departement to charge amount collectively Thanks for your time consideration With regards Ritesh Khurana
Read more at: https://www.caclubindia.com/forum/service-tax-for-real-estate-224385.asp#.UH46mG--o7o
17 October 2012
Well, Let me Clear First to You, Service Tax is Applicable Only in Case When You receive Payment in Advance Before Completion of Certificate Otherwise Only VAT is Applicable.
AfterThat, If You Show Charge Differently Then It Will be 5 Lacs as Works Contract, and on That Work Contract provisions are Applicabl as of 50-50%.
all above mention charges are being collected before completion my query was all these charges are under the purview of construction and abatement is available and company can collect in lumpsum rather than separately
do service tax department raise any objection regarding this
17 October 2012
But In the post amendment scanerio i.e. after 1st July-12 a builder can take the credit of input services and capital goods even if he is claiming the abatement of 75% with the land value. This is bonanza for builders.
17 October 2012
Further Options Available are:- Regarding apartments payment VAT and ST have a common pattern. Out of the total amount chargeable by the builder 40% is land cost. On this there is no VAT ot ST. From the balance amount you have to reduce charges made for registration,electricity,water,sewage and cable connections,amenities like club,swimming pool,sports,gym,security,lift,etc.After making all these deductions the net figure you get will be the construction cost.This includes material value,which is liable for VAT and labour and services part,which is liable for ST.
If proper account is not maintained and declared by you,they are permitted to pay VAT @14.5% on 30% and 12.36% ST on 20% of the total receipts.If you have opted for composition of tax 4% VAT and 5.5% ST on 50% of the total receipts will be liability.
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