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Service tax

Queries 528 views 7 replies

Sir,

Iam purchasing 1350 sq ft flat. Now the builder (an software employee constructing flats in 4000 Sqft Area total 12 flats ) is telling me to pay service tax and vat at the time of Registration. The Value of flat is 38 Lakhs. Please advice me whether I have to pay the Service tax and Vat.

Thanks

Rajan

Replies (7)

Has he registered with Service tax and VAT department? If he is paying taxes and filling returns, you will have to discharge your liability.

The liaibility of service tax and VAT on residential complex depends on various aspects like date of agreement, portion of land value, schedule of payment, completed portion of construction etc.

As far as you are entering into agreement before completion of construction there would be both service tax and K-VAT elements. 

AGREE WITH SIR, IF YOU ARE REGISRETED PLOT YOU NAME AND PAID WHOLE PAYMENT AFTER COMLETION CERTIFICATE OF BUILDING CONSTRUTION, THAN YOU ARE NOT LIABLE TO PAY S.T. AND VAT.

In respect of Service Tax:

In terms of Point of taxation rules "Construction services" are Continous supply of service as work carried out for more than 3 months. Therfefore, in terms of proviso to Rule 3(b) the activity would be liable to service tax when contract requires for payment. If payment is not made on due date then last date when payment is required to be made would be point of tax. 

Conclusion:

You are require to make payment of service tax when you make payment as per contract and if you would not make payment in time then last date when payment is require to be made would be point of taxation.

Regards 

since the area is less than 2000 sq mtr & cost of flat is Also den 1 cr ... means u hv to pay service tax on 25% value of 38 lacs
Now all are require to pay 30% only this is amendment.

My friend is Reliance insurance commission agent.his insurance commission is over then 10 lakhs for last 4 financial year..he should covered servicetax over then 10 laks seeling or service tax paid by Relaince insurance company....? please clarify 

 


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