Liabilty of service tax on construction of residential compl
This query is : Resolved
18 April 2013
Hello Sir,
My client is engaged in providing services relating to construction of residential complex. The construction of said complex is completed & certificate for the same is received from the Authority dated 28.08.2012.
Some of the customers booked the flat before 28.08.2012(i.e. date of completion certificate)by paying booking amount say 1lac or 2lac & not the whole amount.
Now my question is that, whether the Service Tax is to be payable on total value of the flat which are booked before 28.08.2012 otherwise on only the booking amount..
My client is engaged in providing services relating to construction of residential complex. The construction of said complex is completed & certificate for the same is received from the Authority dated 28.08.2012.
Some of the customers booked the flat before 28.08.2012(i.e. date of completion certificate)by paying booking amount say 1lac or 2lac & not the whole amount.
Now my question is that, whether the Service Tax is to be payable on total value of the flat which are booked before 28.08.2012 otherwise on only the booking amount..
CA Vikas Acharya
(Expert)
18 April 2013
Rule 3 of Point of taxation will be applied.
When invoice is issued within 30 days of completion of service.
date of invoice/ payment (earlier)
When invoice is not issued within 30 days of completion of service.
date of completion/payment whichever is earlier.
Note: this is case of 'continuous supply of service.
and in case of such service, date of completion is at each event which has been specified in the contract
and which entitles to demand payment.
eg. on 30% completion this much amount
on 40% completion this much amount etc.
in case of advance received, you have to pay tax on that advance money only, after taking the rebate(abatement).
When invoice is issued within 30 days of completion of service.
date of invoice/ payment (earlier)
When invoice is not issued within 30 days of completion of service.
date of completion/payment whichever is earlier.
Note: this is case of 'continuous supply of service.
and in case of such service, date of completion is at each event which has been specified in the contract
and which entitles to demand payment.
eg. on 30% completion this much amount
on 40% completion this much amount etc.
in case of advance received, you have to pay tax on that advance money only, after taking the rebate(abatement).
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