Service tax on construction contract

As per the sec.66E(b) only the amount paid before issue of completion certificate by competent authority is relevant . so only amount before completion is included in Assessable value.

Whole amount is chargable to ST

As per the provision of service tax:

If you paid any consideration  on or before completion or issue of completion certificate of construction then the same is liable to service tax. On the other hand if consideration is paid after completion then the same is considered as sale and not liable to service tax.

On ther other hand there is and abatement of 75% and 70% and balance is taxable i.e. Assessable Value depending on consideration i.e. 1 Cr and Sq Feet 2000.

Originally posted by : chaitrali m
	PART PAYMENT IS PAID BEFORE COMPLETION & BALANCE AMOUNT IS PAID AFTER COMPLETION. HOW TO CALCULATE SERVICE TAX ? WHAT WILL BE ASSESABLE VALUE?

Full amount of consideration is chargeable to ST. Though abatement would be accordingly applicable u/notification 26/2012.

Regards

Karanjit Singh | +91-7503588224