Regarding construction services

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 April 2012 i have a client who is providing Construction services. Till 31.03.2012 he recd 90% payment on the rate of 2.575%. Now the point is on remaining 10% payment he will charge ser tax @ 2.575% or new rate as per budget @3.09%. Please reply as soon as possible.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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04 April 2012 Till the time, there is no clarity of abatement of 75% on contruction service in proposed budget.

Wait and see, if any notificcation comes in this regard

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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04 April 2012 Till the time, there is no clarity of abatement of 75% on contruction service in proposed budget.

Wait and see, if any notificcation comes in this regard

Pankaj Gandhi Jaiswal

Pankaj Gandhi Jaiswal (Expert)
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04 April 2012 This 2.5575 is not the rate for construction it is the rate applicable to builder and if you will charges then you have to charge at new rate & if you have already charged before march 2012 you can receive later and have to pay only 2.5575 rate service tax

Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2012 pls sir will you clarify abt the same in details.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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06 April 2012 Dear Author,

Till 31st march 2012, the rate of service tax was 25% of 10.30% i.e 2.575.
W.e.f 01/04/2012 the rate of service tax has been changed to 12.36% but in the exhaustive list of abatement, construction service is not mentioned. Since, the new concept of negative list and abatement not yet passed. The old procedure shall be followed with the abatement of 75% but the new rate of 12.36% will be charged.
hence, till the time new notification come, the rate will be 25% of 12.36% i.e 3.09% effectively.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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06 April 2012 Mr. Pankaj,

Builders provide contruction service and they are liable for service tax under constrution of complex service.

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2012 thnx sir for ur valuable suggestions