whether service tax on the services acquired for commercial construction(inputs for commercial construction) is payable when the commercial service is exempt?
Menu
Service tax
Replies (4)
No service Tax liability in the hands of the assessee.
Service tax will be leviable as construction contract is a taxable service. It makes no difference that the services provided from that commercial establishment/ costruction is exempt. However 75% abatement is available if the contract is material cum service. So effective service tax rate will be 10.3 * 25% i.e. 2.575%
The exemption from ST for the output service does not affect the taxability of the input services. They would contineu to be taxable or exempt if any notifcation applicable. Therefore even for road contracts the telephone, insurance, manpower supply etc input services would be liable.
I would like to know whether service tax be levied in case of a proprietorship concern in construction business, doing construction of building for a hotel under an agreement.
Recent Topic
- Reporting STCG on non equity oriented MF
- Section 54F exemption for buying a plot
- My client missed to file ITR 3 for AY 25-26
- Subscription/Membership fees
- Inverted tax gst refund
- Mismatch of pincode and district while registering
- Total income less than 12 lakhs but after processi
- Is Getsvision Solutions right for SMTP bulk email
- Queries on Stock/ETF gifting.
- Adding bank account for the deceased for ITR refun
Related Topics
CAclubindia
