18 July 2011
We are in Property Developement-WCT and registered under composite scheme in Service Tax.Recently we got an advance of Rs.10,00,000/- from a customer towards advance for a flat. How much amount we have to pay as service Tax.We have cenvat credit with ST dept., Whehter this liability canset off against that
18 July 2011
Q.1.Your payment will be under composite WCT is @4.12% i.e.Rs.41,200/=(Including E.Cess & S&Hecess)[Though some further clarification needed.]
Q.2. You can set off the payment from your cenvat.If you have got sufficient balance in it.
18 July 2011
1. ST Payable @4.12% on Rs.10 lacs. 2. CENVAT Credit can't be availed as per rule 3(2) of works Contract (Composition Scheme for Payment of service tax)Rules,2007.
19 July 2011
Credit on capital goods is allowed, so also Service Tax paid on input services can also be taken.Please follow Nfn.32/2007-S.T.dated 22.05.2007.
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