Ser tax by builder

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vikas (Querist)
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17 December 2013 I have purchased a duplex at Bhopal . registry of land of rs 6.50 lac was made by builder in favour of me.I have taken a home loan of rs 20.00 lac over it.the builder is constructing the duplex . at each construction levels he is charging ST on the amt. is this correct ? if yes than can I get any advantage of this ST paid? in my ITR

Manish Bhandari

Manish Bhandari (Expert)
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18 December 2013 No advantage in your ITR and yes ST collection is on receipt / invoice basis whichever is earlier. So the collection of ST phase wise is correct.

CA. Vikash Parakh

CA. Vikash Parakh (Expert)
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18 December 2013 If your duplex is a standalone construction, then service tax is not applicable, as service tax is exempt on construction of single residential unit. However, if your duplex is a part of a complex being constructed by the builder, then the builder has correctly charged service tax.
You cannot claim service tax credit of the same as the same is eligible only if you are also providing such construction services.

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