Service tax or vat???
This query is : Resolved
05 May 2012
Hello Experts,
My query is,
Suppose there is a Construction Company who builds residential complex and sells them. This residential complex is build by company itself and not on works contract basis. Further this company receives sales consideration from its customers before the completion of residential complex in installment.
my query is whether this company should charge Service tax or VAT or both on the installment money received from its customer ???
My query is,
Suppose there is a Construction Company who builds residential complex and sells them. This residential complex is build by company itself and not on works contract basis. Further this company receives sales consideration from its customers before the completion of residential complex in installment.
my query is whether this company should charge Service tax or VAT or both on the installment money received from its customer ???
05 May 2012
Dear Jigar,
first understand that your client is sold flats to his customer or booked the flat and provided construction service.
1. if sold then VAT is attrated and no service tax is to be charged and paid.
2. if provided service then service tax need to be charged.
3. if both i.e, some flats are booked and some are sold after completion then proportionate basis of charge to be followed.
first understand that your client is sold flats to his customer or booked the flat and provided construction service.
1. if sold then VAT is attrated and no service tax is to be charged and paid.
2. if provided service then service tax need to be charged.
3. if both i.e, some flats are booked and some are sold after completion then proportionate basis of charge to be followed.
Message likes :
1 times
05 May 2012
Dear Expert nd Jigar.
Present activity of salling flats and receiving sales consideration before completion certificate has been made taxable w.e.f 01.07.2010 in the hands of Builder i.e. in your this COnstruction COmpany.
As regards, VAT, since this is transaction of sale, VAT is applicable.
As regards Service tax it is also applicable under construction of complex service only on service amount. You can take benefit of abatement of 67% or 75% as the case may be or benefit of Notification No. 12/2003- ST for deducting the value of material used during the provision of such deemed service....
Present activity of salling flats and receiving sales consideration before completion certificate has been made taxable w.e.f 01.07.2010 in the hands of Builder i.e. in your this COnstruction COmpany.
As regards, VAT, since this is transaction of sale, VAT is applicable.
As regards Service tax it is also applicable under construction of complex service only on service amount. You can take benefit of abatement of 67% or 75% as the case may be or benefit of Notification No. 12/2003- ST for deducting the value of material used during the provision of such deemed service....
Message likes :
1 times
07 May 2012
Dear Rajnikant Sir,
the company first building the complex and then invites its customers to booked the flat ....
the company first building the complex and then invites its customers to booked the flat ....
07 May 2012
Dear Rajnikant Sir,
the company is first building the complex and then invites its customers to booked the flat ....
the company is first building the complex and then invites its customers to booked the flat ....
07 May 2012
Dear Rajnikant Sir,
the company is first building the complex and then invites its customers to booked the flat ....
the company is first building the complex and then invites its customers to booked the flat ....
08 May 2012
In your case,
it is outright sale so only vat is applicable and no service tax. but if your client provide maintenance services and charge amount on maintenance then service tax is applicable for service amount.
it is outright sale so only vat is applicable and no service tax. but if your client provide maintenance services and charge amount on maintenance then service tax is applicable for service amount.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Reporting Income under Section 44ADA
- Itr 1 processing
- Off Market debit and credit transaction
- ITR 2 Short Term gain & Long term gain
- Showing Gift from relative in ITR for this year
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR selection for salaries and capital gain less than L
- ITR returnFY25-26
- ITR 1: Details for showing Exempt Income
- Share accounting-->fifo - capital gain - period as per fifo?
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
