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Service tax caluclation on construction business

rates 919 views 2 replies

obalreddy

accountant

282 Points Joined October 2009

Dear Members

My Brother is the starting the Construction Business, He is saled on 20 flates, in the business is applicable the service tax .... which % is appliable the service tax and vat(AP).

please clarified the above dout sir

Thanking you

G.O.REDDY

Replies (2)

Rahul Sharma

Practicing Chartered Accountant

131 Points Joined January 2010

If the sale is including land price then abetment of 75% is availble and if sale is excluding land then 66% abatement is availble.
Service tax is applicable at 12.36%.

Prasad

Sr. Manager

617 Points Joined April 2011

Usually developers make 2 agreements one for land and other for construction. you claim abatment of 75% on construction proceeds and charge your customers service tax at 12.36%