Tax on services

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This query is : Resolved

cacma biswa (Querist)

16 June 2016
Dear Sir / Madam,

As a builder whether I can charge service tax on followings and whether abatement is applicable any of them. ( on collection from customers )

1. Car Parking
2. Preferred Location( River Facing )
3. Club House
4. Maintenance Charges
5. Corpus Fund
6. Stamp duty, Registration Charges and other Government Charges etc

Kindly confirm as your earliest.

Thanks you
Biswa

CA Anant Tyagi

CA Anant Tyagi (Expert)

16 June 2016 The builder is undertaking construction of commercial or residential unit, he can pay service tax on 30% of value if the value includes Land Value. If land value included in your case, you can take abatement on construction activity.

Parking - Taxable.
Preferred Location - Taxable
Club house - Taxable assuming if have constructed the same.
Maintenance charges - Taxable
Corpus Fund - No service tax as not related to construction
Stamp duty etc . - Not taxable as not related to construction activity

You may claim abatement for above taxable activity if land value is included.

Message likes : 1 times

Rupesh Jain

Rupesh Jain (Expert)

16 June 2016 on providing service you have to pay full service tax . on reimbursement of exp. there is no service tax like nos 6

cacma biswa

cacma biswa (Querist)

16 June 2016 Thank you sir, Please mentioned rate, specially on preferred location.

Rupesh Jain

Rupesh Jain (Expert)

16 June 2016 its rate will be 15% at present full rate. in above your construction of flat its will be 30 % of the value it means rate will 4.5% on the value of flat.
but in your service there is no abatement.

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