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Liability to pay s.t.

Service Tax (Legacy) 445 views 4 replies

Hi!
In case of Construction Service, S.T. is payable on the advance amount collected before completion of the construction. However, if the Building Use Permission is obtained and thereafter any sum is collected, is the assessee required to pay S.T. on this amount?

Kindly Help!

Thank You!

Replies (4)

please dont use the shor form(b.u.) nd write your querry properly.

 

sorry ! i have modified the query.

Section 66(b) defines construction service as declared service and reads as follows

"construction of complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partially, except where the entire consideration is received after issuance of complition certificate by the competant authority."

so if the entire cosideration is recieved after issuance of completion certificate then it is wholly exempt from service  tax but if any part payment recieved before issuance of completion certificate than whole amount i.e is amount received peviously and amount recieved after issuance of completion certifiacte both will be liable to service tax.

Thanks a lot Racha :)

 


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