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St on builder @ 33% in maharashtra

This query is : Resolved 

11 May 2012 I have one builder client constructing residential building on MHADA Land and also in SRDA Project

Que : whether S.T.is payable in this case on 25% or 33% ? (after abatement)

generally it is says that 33% is applicable in Karnataka and not in Maharashtra. Under the circumstances if 25% is payable what is the remedy if ST is paid @ 33%?

11 May 2012 Service tax is not a state tax. It is central tax. As per service tax provisions, the rate of service tax is 25% of the original service tax and not 33%.

12 May 2012 Agreed with Expert, Servic tax is a central tax and it is uniform across all states.

Service tax is payable on 33% of gross amount of taxable service but in case if gross amount also includes value of land then servic tax is payable on 25% of gross amount.



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