private construction company

This query is : Resolved

p.hepsiba (Querist)
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26 February 2008 the company has constructed one building
consisting of 4 floors .total flats =6*4
comes to 24 flats.
first downpayment is RS.1,00,000.
within 30 days of allotment one has to pay 25%
2ND INSTALLMENT is 15% due on at the completion of basement roof
3rd INSTALLMENT is 10% due on at the completion of roof slab
4th INSTALLMENT is 20% due on completion of brick work
5th INSTALLMENT is 15% due on at the completion of plastering
is service tax leviable on the sale of 24 flats?
if yes what is the procedure?
6th INSTALLMENT is 10% due on at the completion of flooring

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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26 February 2008 As this clearly indicates construction contract, obviously Service tax will be applicable.

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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27 February 2008 SERVICE TAX WILL BE APPLICABLE TO CONSTRUCTION COMPANY

Ca. Alok Gupta

Ca. Alok Gupta (Expert)
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28 February 2008 service tax is not levied on sale of flat. service tax leviable only if company has taken construction contract from others and company is not selling flat. in this case as per my opinion company is construct flat on owned land and after construction company is selling flat. in this company is not providing any service.

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