Tax liabilty on construction on residential flats

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NITIN SHARMA (Querist)

29 January 2013 What are the service tax liability on a firm engagged in construcion on residential flats at present?
Kindly give secion and ruleing.

Kaushik Vinod

Kaushik Vinod (Expert)

30 January 2013 Dear Nitin,

The Service tax is paid on 25% of the Value if it includes value of Land.
(Notification No.26/2012-ST dated 20-06-2012)

In all other cases it is paid on 40% of the value.(Rule 2A of Service Tax Rules,2006)

The exemption up to 12 residential flats has been deleted so today more then single residential unit is taxable.

Thanks

NITIN SHARMA

NITIN SHARMA (Querist)

30 January 2013 Thanks
1.Please made it clear weather the service tax paid on input services shall be allowed as dedictions or not?
2.If builder made a lobur contract to the contractor and also paid service tax to him then that service tax shall be allowed as dediction as pain on input services?

Kaushik Vinod

Kaushik Vinod (Expert)

30 January 2013 yes all input Services which satisfy the definition in Rule 2(l) of CCR,2004 are eligible for credit.

See Rule 2(l) of CCR,2004 .

Thanks

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