Whether service tax is applicable on statutory levy

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This query is : Resolved

NIKHIL SANDUJA (Querist)

25 June 2013 In a construction of building, EDC ( extra development charges) are levied as a statutory levy on construction. So, whether service tax is payable on EDC charges paid to builder for construction??

CA. RAGHAV GARG

CA. RAGHAV GARG (Expert)

26 June 2013 Service Tax is not to be paid on Taxes, you if EDC are Statutory Levy, then you may deduct to assess the taxable value.

vikas Manglani

vikas Manglani (Expert)

26 June 2013 Service Tax will not be leviable on statutory dues if you have paid complete amount to government but if you have not paid the complete amount then service tax would be leviable on the differential amount. eg. you are charging Rs. 100 to customer as statutory dues but if your statutory dues work out to be Rs. 90 then service tax would be leviable on Rs. 10

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