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Service tax caluclation on construction business

rates 1019 views 2 replies

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)

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%.

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%


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