Residential complex

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Manoop V M (Querist)

08 June 2012 Hai Experts,

A company is enetering in to ab agreement for construction & sale of residential complexes.
For this the co. is collecting 3% VAT & 75% abatement is claimed.(work of the apartment 60% finished)

Beak up of agreement is as follows:
Cost 10(Rs. in lakhs)
Land 3
Car parking 1
Furniture 1
Total 15

Pl advice me on what amount VAT amount & service tax to be collected,,
Sevice tax is aplicable for car parking..? what is the treatment of furniture,,?

Kindly advice ...

Thankyou......

rajula gurva reddy

rajula gurva reddy (Expert)

09 June 2012 If the number of flats are more than or equal to 12, then the builder has to pay Service TAx @ 12.36%. However, there are three options for the builder. 1. on 33% of value without Cenvat Credit on raw materials used for construction. 2. on payment of 100% Value with Cenvat Credit on raw materials. 3. 100% on value of on total value excluding value of the materials used. The other option is also available to them. That i payment of 4% on the gross amount under works contract. The actual Service TAx payable is collected by the builder from the buyers.
In view of the above you may decide the Service TAx to be reimbursed by you while purchasing the flat.

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Manoop V M

Manoop V M (Querist)

09 June 2012 Thank you Expert,

What we are doing is we are taking 75 % abatement & paying service tax @12.36% as land value is also included.

But value of furniture provided extra(in the qw. Rs 1 lakhs..), whether service tax or sale tax is applicable...?