Service tax on other charges under construction of res.

This query is : Open

AMIT KUMAR (Querist)
Follow

18 July 2013 we are engage in a project of housing society
and accordingly charge various component from client against the flat like
1)Basic charge
2)PLC
-Floor
-corner
-View
3)Car parking
4)Power backup
5)club membership
6)External development charges
7)lease Rent etc.
currently we are charging service tax on basic charge @3.09% and on remaining charges @12.36%(i.e without abatement)

whether this working is in a right way or not
if not then why????
tell me right treatment of all the charges form the point of service tax view.
thank you....

Sumit Grover

Sumit Grover (Expert)
Follow

18 July 2013 1) Basic Charge---3.09%/3.708%

2) PLC
---if charged separately--12.36%
---if included in basic---3.09%/3.708%

3)Car Parking---3.09%/3.708%(bundled service)

4)Power Backup(towards cost of installation of DG & substations)-- 3.09%/3.708%

5) Club membership--12.36%

6)EDC--3.09%/3.708%

7) Lease rent-- 12.36%

The aforesaid rates are based on the practice followed in industry and as per the interpretations of various legal provisions.

Message likes : 1 times

AMIT KUMAR

AMIT KUMAR (Querist)
Follow

22 July 2013 IF WE ARE TAKING CANCELLED ANY FLAT ON WHICH SERVICE TAX HAS ALREADY PAID THEN HOW MUCH AMOUNT TO BE RETURN BACK TO CLIENT..
exp:
AMOUNT RECEIVED 300000
SERVICE TAX 8992
AMOUNT TOWARDS THE COST OF FLAT 291008

THEN AT THE TIME OF CANCELLATION OF FLAT HOW MUCH WE HAVE TO RETURN TO CLIENT

Upgrade to CAclubindia Pro. Subscribe Now!