Hi,
Has the rule become applicable to pay 2.58% service tax..or still in stay.
I read it has to be aid by builder.....so do we need to pay the same or builder needs to pay it.

Clarification on same is soughted .
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  • The buyer has to pay it .



    The Central Government, vide its Notification No.1/2006-ST dated 1.3.2006,
    as amended by Notification No.29/2010-ST dated 22.6.2010, w.e.f. 1.7.2010
    and Notification No.36/2010 dated 28th June, 2010, has brought the
    “Construction of complexes” under the taxable service net under the
    aforesaid Service Tax Act. Accordingly all Residential or Commercial units
    constructed and allotted/sold are now subject to Service Tax at appropriate
    rate. The rate of Service Tax applicable on various Sub-heads under which
    payments are to be made for the Residential/Commercial/Retail Units are
    given below :

    Description | Applicable Service Tax
    ------------------------------------------+------------------------------------------
    Basic Sale Price (BSP) | 2.575 %
    ------------------------------------------+------------------------------------------
    Preferential Location Charge (PLC); | 10.3%
    club membership; maintenance charge; |
    other charges |
    ------------------------------------------+------------------------------------------
    EDC/IDC; IFMS; IBMS; Car Park | Nil


    The aforesaid Service Tax is applicable on all payments made by you on or
    after 1st July 2010. The payments received upto 30th June, 2010 are exempt
    from the aforesaid Service Tax. It may please be noted that the Service Tax
    is linked to the actual date of payment and not linked with the date of
    Payment Request.
    CommentQuote
  • Originally Posted by MANOJa
    The buyer has to pay it .



    The Central Government, vide its Notification No.1/2006-ST dated 1.3.2006,
    as amended by Notification No.29/2010-ST dated 22.6.2010, w.e.f. 1.7.2010
    and Notification No.36/2010 dated 28th June, 2010, has brought the
    “Construction of complexes” under the taxable service net under the
    aforesaid Service Tax Act. Accordingly all Residential or Commercial units
    constructed and allotted/sold are now subject to Service Tax at appropriate
    rate. The rate of Service Tax applicable on various Sub-heads under which
    payments are to be made for the Residential/Commercial/Retail Units are
    given below :

    Description | Applicable Service Tax
    ------------------------------------------+------------------------------------------
    Basic Sale Price (BSP) | 2.575 %
    ------------------------------------------+------------------------------------------
    Preferential Location Charge (PLC); | 10.3%
    club membership; maintenance charge; |
    other charges |
    ------------------------------------------+------------------------------------------
    EDC/IDC; IFMS; IBMS; Car Park | Nil


    The aforesaid Service Tax is applicable on all payments made by you on or
    after 1st July 2010. The payments received upto 30th June, 2010 are exempt
    from the aforesaid Service Tax. It may please be noted that the Service Tax
    is linked to the actual date of payment and not linked with the date of
    Payment Request.




    Thnks for the info..really helpful.
    CommentQuote
  • Originally Posted by Jitu_Sir
    Dear amitdejavu,Still haven't received any sound info about Supreme Court order regarding VAT. Will update soon.


    Actually in one of thread, Jitu_Sir said he'll get back to us on the same...

    Jitu_Sir, has the decision been made on this?
    CommentQuote
  • Originally Posted by abhi2509
    Actually in one of thread, Jitu_Sir said he'll get back to us on the same...

    Jitu_Sir, has the decision been made on this?

    Dear abhi2509,
    Still haven't received any news. Will update you soon.
    CommentQuote
  • Originally Posted by Jitu_Sir

    Dear abhi2509,
    Still haven't received any news. Will update you soon.



    Jitu Sir must be looking for an iota of a hint which could say that the service tax has to be paid by the buyer :D:D

    I think that vital piece of news is still eluding him :D:D

    Just kidding :)
    CommentQuote
  • Originally Posted by MANOJa
    The buyer has to pay it .



    The Central Government, vide its Notification No.1/2006-ST dated 1.3.2006,
    as amended by Notification No.29/2010-ST dated 22.6.2010, w.e.f. 1.7.2010
    and Notification No.36/2010 dated 28th June, 2010, has brought the
    “Construction of complexes” under the taxable service net under the
    aforesaid Service Tax Act. Accordingly all Residential or Commercial units
    constructed and allotted/sold are now subject to Service Tax at appropriate
    rate. The rate of Service Tax applicable on various Sub-heads under which
    payments are to be made for the Residential/Commercial/Retail Units are
    given below :

    Description | Applicable Service Tax
    ------------------------------------------+------------------------------------------
    Basic Sale Price (BSP) | 2.575 %
    ------------------------------------------+------------------------------------------
    Preferential Location Charge (PLC); | 10.3%
    club membership; maintenance charge; |
    other charges |
    ------------------------------------------+------------------------------------------
    EDC/IDC; IFMS; IBMS; Car Park | Nil


    The aforesaid Service Tax is applicable on all payments made by you on or
    after 1st July 2010. The payments received upto 30th June, 2010 are exempt
    from the aforesaid Service Tax. It may please be noted that the Service Tax
    is linked to the actual date of payment and not linked with the date of
    Payment Request.


    Thanks Manoja for clarifying so explicitly. Even though I knew the rates, but had not seen this circular, which nails everything down
    CommentQuote
  • Query on service tax

    Hi Jitu Sir,

    If the building is in construction phase during June,2010 and has been completed till say 80% as on 30th June,2010. Will the service tax amount be 2.5% of the total agreement value or only 2.5% of the remaining 20% of the building which has been constructed post June,2010.
    I have paid all the amount post June 2010 only.
    CommentQuote
  • What ever amount is paid after 30th june 2010 will attract service tax....
    CommentQuote
  • Originally Posted by gotia1
    What ever amount is paid after 30th june 2010 will attract service tax....


    There is new provision for ST in affordable housing. It says 'Exemption in ST on construction of affordable housing projects (< 60 sq.mt. unit size)'. It means if the agreement mentions area less than 60 sq.mt., there is no ST to be paid.
    CommentQuote