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Vat or st on building construction

Vaghani (article) (30 Points)

05 June 2012

HEY GUYS,

I WANT TO KNOW THAT ON WHICH CRITIRIA BUILDING CONSTRUCTION WILL BE TAXED. IN OTHER WORDS THEY ARE LIABLE TO COLLECT SERVICE TAX OR VALUE ADDED TAX .........

PLZ BE NEEDFUL

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Sameer (EXPERT) (173 Points)
Replied 05 June 2012

Dear

u need to pay both service tax & vat on construcrucion of building (except the residencial building construction for not more than 12).

u can pay service tax by taking abatement of 67% & pay 12.36% service tax on balance 33%.but no cenvat cr is available on input service tax

& again vat is separate for state to state ,c that in some of state u can avail 30% abate ment is service part & u can pay 4.12% on balance 70%,& that to u can avail input credit on material purchased.