Dear ALL, Please let me know if Ag. Value is Say Rs. 1.25 Crore and S.Duty Ready Reckoner Value is Say Rs. 1.80 Cr. In the above case, after abatement we need to pay service tax on RS. 1.25 Crore as and when the customer gives the payments, the amount which customer will pay to the builder eventually.
In other words i should not be paying on Rs. 1.80 CR which is just the Ready reckoner Value.
Please reply if my understanding is correct.
Rajesh Poddar
Service Tax is paid on the amount received against service provided.As per Service Tax(determination of valve) Rules it has to be gross amount of contract,So in your csae you are right it has to be 1.25cr for the purpose of Service Tax and not 1.8 which is the notional valve only for collecting Stamp duty.
Service Tax is paid on the amount received against service provided.As per Service Tax(determination of valve) Rules it has to be gross amount of contract,So in your csae you are right it has to be 1.25cr for the purpose of Service Tax and not 1.8 which is the notional valve only for collecting Stamp duty.
CAclubindia
