05 August 2016
MY CLIENT IS PVT LTD COMPANY PROVIDING LABOUR FOR CONSTRUCTION PURPOSES AND DEPOSITING SERVICE TAX ALSO AS LAST YEAR SERVICES WAS EXCEEDING 10 LACS. BUT NOW BESIDES SUPPLY OF LABOUR SERVICES MY CLIENT ALSO WANTS TO GIVE ARCHITECT CONSULTANCY SERVICES. I WANT TO KNOW WHETHER SERVICE TAX WILL BE LIEVED ON THIS NEW SERVICES ALSO OR EXEMPTION OF 10 LAC IS APPLICABLE ON THIS NEW SERVICES. Pls reply
29 September 2016
thanks sir i would like to ask one question more that service tax is no levied if entire consideration is received after completion certificate but what if partial consideration is received before certificate and partial after completion certificate in case of construction company
30 September 2016
Sir Pls solve my query with this example like XYZ PVT LTD CONSTRUCTION COMPANY Purchased His own land and make 40 flats to sell for 10 lac each. out of which there is advance booking of 10 flats and 5 lac each is recd on 11 .july. 16 before completion certificate . the completion certificate is recd on 10.aug.2016 now in sept 16 balance money is recd suppose 5 lac what is liability of service tax now in sept. as service tax is deposited on 5 lac on july but what about on bal. 5 lac.is there is provision that if new flat is sold after completion certificate then there is no liability of service tax?
30 September 2016
Service tax is payable for balance money received in September for 10 flats. No service tax payable on 30 flats sold after completion.
30 September 2016
thanks sir. one more question my client is construction co. and there is very much difficulty in arranging funds from banks as banks usually dont give loans to builders. Now we have to arrange funds kindly suggest me how we can arrange funds i.e methods so that company provisions will not be violated and funds can be arranged
30 September 2016
The advances have been received of only few flats rest are unsold.sir pls suggest whether co. can take unsecured loan /advance from other company..or secured loan from NBFC/PARTNERSHIP FIRM/HUFOR ANY OTHER WAY. ALL BANKS HAVE REJECTED TO GIVE LOAN.
08 October 2016
sir kindly suggest me that suppose xyz pvt ltd co. is paying to contractor after deducting tds exceeding amt eg. 40 lac in a year and that contractor does not deposit service tax on it but we are deposting service tax on that work for which we are paying to contractor like labour work.then what will be the liability of company in case that contractor i,e labour does no deposit service tax. is there any Deffered tax against it what is the procedure for it
08 October 2016
Being you are a company you are liable for service tax under RCM for 50% of service tax applicable. If you pay this amount, then you are not liable even if the contractor not paying the service tax.
08 October 2016
sir we are depositing service tax on that work which we are providing labour services to xyz and that service tax is also reimbursed by xyz to us but my question is if we are hire labour on contract basis eg from abc who is indidual and we are paying abc after deducting tds and if abc not deposit service tax then what is our liability . if aCCORDING TO YOU RCM willbe applicable then can we take cenvat credit of it . what is procedure kindly tell me in detail
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