Construction of flats

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Ebin cheeran abraham (Querist)
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20 March 2016 if an assesse is engaged in the business of construction of flats what is the applicability of service tax and VAT .They collecting advance from customers

praveen

praveen (Expert)
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20 March 2016 This will be covered under works contract under which both service tax and VAT needs to be paid. Whenever advances are received ST has to be paid. It should be same under VAT also. I am unable to tell more on VAT since it is governed by the respective state. In Karnataka you need to pay VAT on advance received as well.

Ebin cheeran abraham

Ebin cheeran abraham (Querist)
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20 March 2016 what is the rate of service tax? what is difference between works contract and construction service in the point of builder?

Ebin cheeran abraham

Ebin cheeran abraham (Querist)
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20 March 2016 it is in kerala what is the rate of service of tax?

praveen

praveen (Expert)
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20 March 2016 An example for works contract is taking a contract for building just one wall. Construction service means you either own a piece of land and construct and sell or you enter into JD and then construct and sell. There are different methods of valuation and its quite complicated. It is advisable to take an opinion from a CA giving him all the facts.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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20 March 2016 ST - 5.80% ( ST 5.60% + SBC 0.20%) up to 31-5-2016 and there after @ 6.00% ( ST 5.60% + SBC 0.20% + KKC 0.20%).

KVAT - 6% if having CST,otherwise 3% + tax u/s 6(2).

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