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Liability to pay s.t.

Nishtha Narielwala (Tax Consultant) (131 Points)

27 February 2013

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!

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4 Replies

CA MAYUR THAKKAR (Propritor) (65 Points)
Replied 27 February 2013

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

Nishtha Narielwala (Tax Consultant) (131 Points)
Replied 27 February 2013

sorry ! i have modified the query.

CA. Rachna Parashar (partner) (196 Points)
Replied 28 February 2013

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.

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