%s to be charged while rising invoice of a construction firm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 December 2014 Dear Experts,

It is for a partnership firm, Nature of work is Builders & developers(Works Contract), they have completed a construction project which is more than 2000Sqft and now we have to raise an invoice for the same.

As it contains both the Labour part and material which would attract both ST and VAT, we require suggestion as to how the apportionment is needed to be done also we require the acts and rules applicable.

Again, what will be the requisites for the built up area which is less than 2000Sqft.

Thanks,

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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27 December 2014 Construction services are taxable only if total or part of the consideration is received from the customer on after the date of issuance of certificate from competent authority.

If any part of the consideration received before the issuance of completions certificate Service tax required to paid.
However abatement of 75% is available if the corporate area is less than 2000 square feet and total consideration is less than 1 crore.

In other cases only 70% exemption is available

Further, it is not work contract services under service tax it is construction services under section 66E