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Works contract or construction of complex service

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This query is : Resolved

Mallajeet Sonowal (Querist)

10 December 2015 Suppose A is a builder who buys land first and then enters into agreement with potential buyers for construction of Appartments in the said land. He also receives advances for the same. Suppose he is constructing an apartment complex consisting of 10 flats. He issued single invoice to each buyer mentioning the gross amount of the contract (flat price) and WCT. He is also paying vat on the said contracts. the value of the undivided land transferred to each buyer is mentioned in the sale deed executed by the builder and buyer. Now, How the service tax liability on this is calculated? Whther it is WCS or CCS? Please explain by showing a rough calculation

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 December 2015 It is CCS. 14.5% service tax payable on 25% value of flats including land(where the flat cost is less than 1 crore and carpet area is less than 2000 sq feet).

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