Service Tax on residential complex
This query is : Resolved
27 May 2010
Is there any abatement granted to the service provider in case of construction of residential complex with reference to the Finance Act, 2010? [By virtue of Finance Act, 2010, an explanation has been added in sub caluse (zzzh)]. If yes, what is the quantum of abatement?
Kindly give the reference of such notification, if any!
Kindly give the reference of such notification, if any!
Guest
Guest
(Expert)
27 May 2010
The contractor is entitled to claim abatement to the extent of 67 per cent of the value of services rendered by him. It must also be understood that similar to the VAT, input tax credits could be available to offset these service taxes and hence the net effect of the tax could be lesser than the 3.4 per cent, since construction attracts service tax only on 33 per cent of the value.
27 May 2010
Thanks you for the reply.
In the present provision, where the construction of residential complex is covered under the deemed applicablity (added by way of an explanation) in a situation where the buyer (or say prospective buyer) makes advance payment to the buider, the builder is liable to make payment of service tax to the credit of government. In such case, is he still elegible for 67% abatement?
The point here is, the possession of the property will be handed over in the future date and the agreement entered at present is with regard to "future sale agreement". The money so paid by the buyer can be considered as token money. In such case, whether service tax is applicable?? (in the light of provision as amended by Finance Act, 2010?)
In the present provision, where the construction of residential complex is covered under the deemed applicablity (added by way of an explanation) in a situation where the buyer (or say prospective buyer) makes advance payment to the buider, the builder is liable to make payment of service tax to the credit of government. In such case, is he still elegible for 67% abatement?
The point here is, the possession of the property will be handed over in the future date and the agreement entered at present is with regard to "future sale agreement". The money so paid by the buyer can be considered as token money. In such case, whether service tax is applicable?? (in the light of provision as amended by Finance Act, 2010?)
07 June 2010
Options are available.
Under works contract - 75%
Under Not 1/2006 Construction - 67%
Under Not 12/2003 - amount offerred for VAT
Under WC compostion scheme also possible @ 4.12%.
In all options except 1/2006 credit of input services + capital goods is available.
Under works contract - 75%
Under Not 1/2006 Construction - 67%
Under Not 12/2003 - amount offerred for VAT
Under WC compostion scheme also possible @ 4.12%.
In all options except 1/2006 credit of input services + capital goods is available.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- SEC 54 OF IT ACT
- Where to show the RCM on Rent paid to unregistered landlord
- Is Aadhar PAN linking required for opening bank account?
- Form 26QB for TDS on property
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- BLOCKED-INELIGIBLE GST CREDIT
- Amendment of September 2021 Invoice
- Payable outstanding for years disallowance
- Offsetting interest income against derivative trading losses
- Whether still royalty
- Strategic Performance Management and Business Valuation
- Appeals vs Writ court -certain doubt
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
