ca fahad karu (Chartered accountant) (43 Points)
09 October 2012
THE ASSESSE HAS PERUE THE SERVICE TAX REGISTRATION UNDER CONSTRUCTION OF RES. COMPLEX...
WEATHER PART ADVANCE RECD. BEFORE COMPLETION & PART ADVANCE RECD AFTER CONSIDERATION, SO WHOLE ADVANCE TAXABLE OR ONLY AMOUNT RECD BEFORE COMPLETION IS TAXABLE ONLY????????????
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 10 October 2012
Entire value of the flat is liable to service tax, if any amount is received prior to getting of completion cerrtificate.
Vikas
(CA)
(1135 Points)
Replied 10 October 2012
Entire consideration shall be received before completion for non-taxability.
Hence, in this case, service tax liability shall be imposed on the entire consideration.
You may refer Sec66E(b) for meaning and you can claim abatement of 25% as per Notification No.26/2012-St dated 20-06-2012, if the value includes land value, else go for 40% valuation as per Rule 2A of Service Tax (Determination of Value) Rules, 2006 under works contract scheme.
Hope this is suffice.
ca fahad karu
(Chartered accountant)
(43 Points)
Replied 10 October 2012
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 10 October 2012
One has tobe careful of the possible classification disputes.
If the service is under construction services then on 25% of amount [ inlcuding the value of land] recived before completion there isa liability.
In case the same is a works contract then on actual value of services involved . [ If one is under the regular scheme under VAT and say discharges the VAT on 72% or 65% of the value, then ST can be paid on the balance as per Valuation rules. Where the figures are not available then pay ST on 40%. In this category the ST is payable only on the construction contract and not on the land value.
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 10 October 2012
Respected Experts
Very informative discussion on a complex issue. I am keeping this bookmarked.
Regards,
CAclubindia
