Service Tax on Advances in case of Builders

Yes, service tax is to be paid on advance received after 1.07.2010.

Please refer notification no 36/2010 dated 28th June 2010 corrected vide corrigendum dated 29^th July, 2010. 

Residential construction activity could be classified depending on the agreement under worsk contract or under resideintial complex service.

Once liability / coverage confirmed then the ST is attacrted on advances also as the defintion includes services tobe provided.

Hi.......... Rupesh

Service Tax shall be paid on advance received against residential compex and this service shall be classified under Complex Construction service as per the Provisions of Section 65A of the Finance Act, 1994.

Thanks

Lalit

Residential construction activity could be classified depending on the agreement under worsk contract or under resideintial complex service.

Once liability / coverage confirmed then the ST is attacrted on advances also as the defintion includes services tobe provided.

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