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Tax on making residential and commercial complex

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This query is : Resolved

LALIT KUMAR (Querist)

10 May 2012 Dear Sir/ Madam

I want to know about tax procedure in selling the residential and commercial complex by builders in Uttar Pardesh.

E.G. 1.How and when it is collected from customer? 2. How is it paid to government? 3. What is Due Date? 4. On which portion of consideration it will be calculated?

Thanks

Lalit Kumar
M.NO. 8802156914

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)

10 May 2012 The Sevice tax is required to be paid by the builders under " Construction of complex Service".

The same is collected from the prospective buyers and paid to the govt.
The service tax liability shall arise only if the amount(partly/fully) towards sale of property is received before completion of project.
Once the advance is collected, the service tax liability arises and shall be paid to the govt @3.09%(i.e 25% of 12.36%). The amount is collected from the buyers only.

The due date shall be 6th of the following month.
The rate shall be on advance received from the customer.

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