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TMI Blogservice tax on construction buildingX X X X Extracts X X X X X X X X Extracts X X X X ..... Please advise me whether service tax is applicable for one of my client who is making constructing buildings in the form of duplex for residential accomadation. He sold the portion of land individually to all the customers. Now he has made agreement for construction of building one-to-one basis individually. My question is whthere service tax is chargable if so under which category? - Reply By ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vasudevan unnikrishnan - The Reply = works contract service may attract,which is 4% of the gross value,and cenvat can be taken on the inputs. - Reply By ANAND SHEMBEKAR - The Reply = In your the answer is as below : You are providing the service to your customers. If the State VAT is applicable for your construction work , then your services are falling under the category of works contract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service. You have to charge the WCT @ 4% on entire value of contract excluding VAT element plus 2% ED cess and 1% Shed cess , so the effective rate of service tax is 4.12% . In the works contract composition scheme , you are not entitled to take the cenvat credit on inputs,Please see the notification no. 32/2007 . Kindly note that any materials are supplied to your client at free of cost to yo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u then the value of materials must be added in taxable value for the purpose of charging WCT service tax. Thanks A M SHEMBEKAR CELL 09421187122 - Reply By vasudevan unnikrishnan - The Reply = cenvat on capital goods and input services are available for works contract service;only cenvat on 'input materials'are not admissible.. - Reply By siva ramalingam - The Reply = Dear Sir, This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service will not attract Service tax because this service will not fall under the following category 1)Commercial Construction Service 2)Residencial Complex construction service 1) This will not fall commercial construction service because no motive of Profit make. this for personal use of Individuals. 2)This service not fall under residential complex this category define more than 12 hous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es as per your statement come to know one-one basis so definatly this will not fall under the same so according to me there will not attract any service tax for the same - service tax on construction building - Query Started By: - santosh sabat Dated:- 26-11-2011 Service Tax - Got 4 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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