Applicability and liability of service tax

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..... Applicability and liability of service tax
Query (Issue) Started By: - Raghu Dated:- 4-2-2008 Last Reply Date:- 6-2-2008 Service Tax
Got 3 Replies
Service Tax
A builder who enters in to a development agreement with the buyer of the flat and receives advance payments for the same intends to pay service tax on the amounts received by him under WORKS CONTRACT services. The builder was ea .....

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..... rlier paying the service tax for the same under "construction of residential complexservices" .Is it obligatory for the builder to register such development contracts undertaken after 01.06.2007 with the local Sales Tax department for discharging their service tax liability under the newly introduced Works Contract services. Reply By YASHAVANTH R.M.: The Reply: If Builders already paid ST under " .....

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..... Construction of residential complex services" and if would like to switchover to pay ST under "Works contract Services" for new projects, it is required to insert/amend the "Works Contract Services" in their ST registration and pay ST under the new service.{ in your draft you may written Sales Tax Dept. instead of Service tax Dept.- if not service tax payment not connected with Sales tax departmen .....

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..... t }. Reply By V Ramanujam: The Reply: As per the Service tax Dept clarification, receipts of existing contracts entered into pre-1.6.07 should continue to be reported only the old category of say 'construction service'. Any new contract entered after 1.6.07 (after introduction of works contract service) may be reported under the new service in which case the certificat should be amended to include .....

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..... the service. Reply By V Ramanujam: The Reply: As per the Service tax Dept clarification, receipts of existing contracts entered into pre-1.6.07 should continue to be reported only the old category of say 'construction service'. Any new contract entered after 1.6.07 (after introduction of works contract service) may be reported under the new service in which case the certificate should be amended .....

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..... to include the service.
Discussion Forum - Knowledge Sharing .....

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