Applicability of vat & service tax

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Querist : Anonymous

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11 June 2014 Co-op Hsg Society has undertaken repairs for one of its buildings? Would works contract and service tax be applicable for such transactions? Also would WCT & Service Tax be applicable to Coop Hsg Socities and under which regulation?

CA UMESH DULAL

CA UMESH DULAL (Expert)
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11 June 2014 Is Society a contractor or contractee, plz clarify.

Querist : Anonymous

Querist : Anonymous (Querist)

11 June 2014 contractee. society is based in mumbai. whether tds under WCT would be applicable. I presume the rate for composition should be 5%

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CA UMESH DULAL

CA UMESH DULAL (Expert)
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11 June 2014 In D-VAT, Society has to deduct TDS@4% (D-VAT TDS) on contract amount if the contract amount exceeds by 30000. As far as Service tax, it depend upon contractor, whether it is liable for service tax or not (i.e. turnover is less than 10 lac or not)

CA UMESH DULAL

CA UMESH DULAL (Expert)
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11 June 2014 Check the provision of M-VAT.

Querist : Anonymous

Querist : Anonymous (Querist)

11 June 2014 Assuming that the contract value is exceeding Rs. 10 lakhs what would be the service tax implications?

CA UMESH DULAL

CA UMESH DULAL (Expert)
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11 June 2014 I am answering as per D-VAT.
1. Society is required to deduct TDS on contract amount.
2. Contractee will charge both MVAT and SErvice tax on his bill

Querist : Anonymous

Querist : Anonymous (Querist)

11 June 2014 I have question about service tax which would be uniform across India

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CA UMESH DULAL

CA UMESH DULAL (Expert)
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11 June 2014 Contractee is liable for service tax

Querist : Anonymous

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11 June 2014 Can the society pay service tax on 60% of the works contract value as per no. effective 01.07.12

CA UMESH DULAL

CA UMESH DULAL (Expert)
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11 June 2014 It is totally depend upon contractee. Whether he is charging ST on actual basis or he is charging as per abatement notification.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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11 June 2014 Here,the housing co-op society undertakes construction/repair for own use or use by its members.If some sale is involved then the VAT and ST are attracted.But,a contractor who executes their work does transfer of property in goods and provides construction service. So,he is liable to pay VAT and ST,which may ,in turn gets passed on to members.This will be as per respective rules.....mjk

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Querist : Anonymous

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11 June 2014 Can the benefit of abatement under Rule 2A be made applicable to other works contract, be availed by the society on the gross value since it may opt for composition scheme.