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+-liability of service tax on construction service

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This query is : Resolved

sanjay k bulakh (Querist)

31 August 2014 When Service tax liability under construction service is arises. 1. Is service tax payable on receipts i.e. whenever we recd payment from customer for flat boking? OR 2. Service tax to be payable on the basis of agreement date on agreement value at once? pl clairfy - SANJAY

Annu Agarwal

Annu Agarwal (Expert)

01 September 2014 Construction contracts are a type of continuous supply of service contracts as work gets completed in stages.

As per Proviso to Rule 3 of Point of taxation Rules,2011
In case of construction contracts date of completion of events specified in the agreement is the date of completion of provision of services and service tax liability shall arise on such dates.
Therefore service tax is to be paid in stages and not at once.

sanjay k bulakh

sanjay k bulakh (Querist)

01 September 2014 Thank you Sir, for your Reply -Sanjay

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