vat and service tax

Queries 1524 views 4 replies

a construction/developer co is paying vat on sale of houses at compounded rate on construction cost .

is it possible that co is paying vat and service tax can be demanded from co

Replies (4)

When your are in composition/compounded rate of tax under VAT, you cannot raise a VAT Tax Invoice.

Whereas in case of there is no such prohibition under service tax.

my question is that can sevice tax and VAT  be charged on sale of same product i.e.house ?

what is the due date for filing of  VAT monthly and annual return?

In case of SALE, service tax is not applicable but VAT/CST is applicable because there is no service involved in case of a sale.  Hence, in a transaction of sale, in your case, the house, service tax need not be charged.  If it is not sold but constructed under the capacity of a contractor, your position will be different.  In such a case, VAT is appicbale on the property transferred and service tax is applicable on srvice value.  Hope this reply would satisfy your query.  There are different judicial decisions supporting this.  BSNL Case (SC)and very recently the Gauhati HC order in Magus Construction Co. O.K.


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