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Service tax rates

S Gupta (Finance Manager) (92 Points)

29 June 2012

Hi,

Requested to advice me on the followign querries

Service tax on sale flats under Residential Complex services under NEW Provisions

Presently we are calculating the service tax on sale of flats at the time of registration @ 3.09% (i.e 25% of 12.36%) . Now we have to pay (before 5th July) the service tax for the quarter upto june 12 at what rate we have to pay the taxes?

What is the rate of tax on works contract services on construction of residential complex ( presently 4.94%)

In case of advances we are charging @ 3.09% is there any change, What is the position of the same under the new provisions wef 01.07.2012?

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5 Replies

Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 03 July 2012

The recent changes are applicable for the services provided w.e.f 01-07-2012. Hence you need to pay service tax as per your existing practice for the 1st Qtr.

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Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 03 July 2012

As per the recent changes, if you receive any amount before the receipt of completion certificate then the value of service will be 40% of the contract value. Hence, service tax will be applicable @ 12.36 on 40% of the value of the contract excluding VAT, if charged. But if you receive the entire amount after the receipt of completion certificate, then value of service will be 25% of the contract value.

S Gupta (Finance Manager) (92 Points)
Replied 03 July 2012

First of all say thanks. The total amount received by you after receipt of completion certificate, the entire amount exempted from service tax. At present we are collecting 40% of 12.36% on accrual basis and on payment basis wef 01.07.2012 what is the rate? can you inform me plz?