banner_ad

Service tax applicability on construction of residential com

Queries 763 views 1 replies

Dear sir,

in our case one of our client ( engineering contractors)purchase land for construction of residential complex. then he sell undivided portion in land along with the right to construct each apartment to each buyers. each buyer enters into an agreement with our client (i.e. seller of undivided share land) to construct the residential building. what will be the service tax applicability & exemptions under new regime. our client is a private limited company.can you please help me friends ?

Replies (1)

The service provided by your client is liable to service tax. 40% of the gross amount received from customers is the value of service. Tax is 12.36% of this amount. Alternatively, if land value is included in the gross amount , then you can opt abatement. Under this method 25% gross amount inclusive of land value is the value of service.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details