When to pay Service Tax

Yes, you have to pay service tax at the time of payment of installment. Your builder might be registered under works contract service that is why he is charging 4.12 % service tax.

Sir,

I am a registered Printing Press (a partnership concern) and owe B/w Photocopier Services, Color Copy Services and Prints from Xerox Digital Press Machine alongwith 4 Color Offset machine.   We are already paying VAT.  

are we liabile to pay service tax

Originally posted by : aman kumar
	Sir, I am a registered Printing Press (a partnership concern) and owe B/w Photocopier Services, Color Copy Services and Prints from Xerox Digital Press Machine alongwith 4 Color Offset machine.   We are already paying VAT.   are we liabile to pay service tax

Primafacie, as per my understanding, i dont think Service tax will be applicable on it as You are already paying VAT.

Originally posted by : aman kumar
	Sir, I am a registered Printing Press (a partnership concern) and owe B/w Photocopier Services, Color Copy Services and Prints from Xerox Digital Press Machine alongwith 4 Color Offset machine.   We are already paying VAT.   are we liabile to pay service tax

if u r paying vat on your finish product then no service tax, but if you are paying vat on goods and charge separately for printing, then service tax applicable on printing value.

But do i need to pay both service tax as well as VAT for an apartment that is under construction?

Service Tax on Under Construction Property

It should be noted that the service tax would be levied only on under construction property. A property is considered “under construction” till the builder receives a “completion certificate” from the relevant authorities.

Thus, if an amount for the purchase of a property is paid to the builder before he obtains a completion certificate, it would be subject to service tax. Only if the entire amount for the property purchase is paid after the receipt of a completion certificate, there would be no levy of the service tax.

Abatement allowed

But don’t get too shocked – you won’t pay service tax on the entire amount. 67% of the amount charged by the builder is considered to be cost of land, materials, etc. Only the remaining 33% amount is considered as “service” provided.

Therefore, you would pay 10.3% service tax only on 33% of the amount that you have paid. Thus, the effective rate of tax for you would be about 3.34% of the total amount paid by you.

What does it mean for you?