Contract for original work of flat

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2015 Dear experts,
we have taken contract for construct of flat, while issuing the invoice to vendor. how much service tax should i charge.

plz reply it's really urgent

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 September 2015 Charge 14% service tax on 40% value of invoice.

Querist : Anonymous

Querist : Anonymous (Querist)

12 September 2015 Respected sir
my CA has suggested that this contract is to execute the residential flat hence if the carpet area is below 2000 squar ft and flat worth is below 1 cr, then we need to charge ST on 25% of value, if any one of the condition is not covered then need to charge ST on 30% of value...

plz confirm is this correct or not

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 September 2015 Your CA is right provided you purchased the land and constructing and selling the flats. That 25% and 30% is inclusive of land value.
My reply is right if you are only a contractor to construct the flat.

Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2015 OK.my this query is resolved... but i have one more query... as below mentioned....

i have taken land from land owner on which i will make the flat, total 20 flat will be made. the 3 flat will be given to land owner against his land, and remaining 17 flat will be mine, in this situation... neither i have purchased the land nor i have taken the contract to construct the flat. plz tell me what will be ST liability on this....

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 September 2015 In that case what your CA suggested will hold good. Service tax at 14 % payable on 25%/30% of sale value of flats.

Querist : Anonymous

Querist : Anonymous (Querist)

14 September 2015 respected sir. will this condition be applicable if i have not purchased the land also....

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