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What is Works Contract Service Tax

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Hi,

I have purchased a flat last year and it is under construction. My builder has asked me to pay works contract service tax ( @ 4.12% of the total payment made to the builder so far).  I dont know if I have to actually pay this tax.. I have no idea what it means?

Can you explain? Is it legal to levy this tax for all the payments made so far starting from August 2009? Thanks a lot for the information in advance

Hema

Replies (1)

DEAR

WORKS COTRACT TAX AS A SERVICE TAX FOR CONSTRUCTION COPMANY  IT IS EXEMPTION FOR  COSTRUCTION BUSINES  @ 4.12% OR  INSTEAT OF WORKS CONTRACT TAXT SERVICE TAX IS  CHARGED BY COSTRUCTION COMPANY  IN ABATEMENT  SCCHEME  SERVICE TAX @ 10.30% ON  33% 


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