Service tax rate and computation

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This query is : Resolved

Hardik Varu (Querist)

20 October 2010 Que 1 : In service of construction of Residential Complex, the rate of abatement is 75%???

Que 2: So if for construction of residential complex, the advance received is Rs.200000.
The service tax to be paid is on Rs.50000(200000-75% abatement).
so as Rs.50,000 would be inclusive of service tax. The service tax to be paid would be Rs.4669 (50,000*10.3/110.3)???

Que 3: When the construction is completed, only sale deed is prepared between the service provider and the client purchasing the residential building. So the sale deed would only be showing the amount of sale along with the stamp duty of it. So is there any necessity to show the service tax amount anywhere in the sale deed???

Que 4: So if the sale deed is of Rs.10,00,000. The total amount received inclusive of service tax would be Rs.10,00,000. So after considering abatement of Rs.750,000, the service tax to be paid would be Rs.23,345 (250,000*10.3/110.3). So in ST-3 of Gross Receipts and gross bill amount is to be Shown as 10,00,000 or Rs.976655 (10,00,000-23345)???

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

21 October 2010 Your agreements with buyers wouldbe critical. If you are having asale agreement then you maybe covered under the new entry wef 1.7.2010 until completion of building.
If so then on 25% of the gross amount recived after this date ST is payable. If all inclusive rates negotiated then backward working would have tobe done.

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