Construction Industry

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This query is : Resolved

Meera Joisher (Querist)

02 July 2010 On construction industry ST, on an additional service of providing additional benefits(location etc) and ammendment to the existing services whereby any flat/office sold and money received before receipt of completion certificate is subject to Service tax, is effective from 01/07/2010.

So in this case what shall be the chargeability scenario if the sale transaction is initiated before 01/07/10 & token money/ partial payment is received before 01/07/10? Shall the entire transaction value not be subject to Service tax even though the balance instalments are received after 01/07/10 but before CC?

Secondly can you please confirm the rate at which ST shall be payable on these services. i.e. shall it be 25% of 12.36% = 3.09% or 25% of 10.3% = 2.58%.

Thirdly the abatement clause of 75% is inserted after the abatement clause of 67%. the existing clause is not replaced by the new rate. So in this case both the rates prevail simultaneously. Which one to be applied shall be decided by whom?

Lastly, one of the sites say that ST is not payable for small houses. & for considering the value of small houses, the value affixed is Rs. 20 lacs. i.e. no ST is payable on transaction below or equal to 20 lacs. Is that right? If yes can someone please provide the circular/notification providing the same.