23 August 2016
Residential apartments were build and sold by the assessee. No amount was separately charged for service tax on them. Service tax was calculated and deposited as per rules. Now the question is how will the business income of the assessee will be calculated. Suppose the flat was sold for rs. 10 lakhs (inclusive of service tax) and the service tax of rs. 1.5 lakh was paid to service tax department, for which no separate amount was charged from the buyer. income of assessee will be calculated on 10 lakh. or rs. 8.5 lakh, or by netting rs 10 lakh by 15%. also i want to know whether the provisions of section 50C will apply or not?
24 August 2016
8.5 lacs will be considered as sale value excluding taxes. Section 50C not applicable here as sale value is 10 lacs including service tax.
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