How to calculate service tax in construction catatory
Answer Posted / v p narasimhan
In case of a construction sector the rule for Service Tax
applies as follows:
1) If its a commercial complex - Service Tax is applicable
2) If its a Residential complex - Service Tax will not be
applicable (provided there should not be more than 8 flats)
The calculation should be as follows:
1/3 of the work value alone is taxable @ 12.36 %
If the work value is 12.00 lacs - 4.00 lacs is turnover for
service tax.
Important note: Since 1/3 alone chargeable for tax no input
credit is allowed.
If the major materials viz., steel/cement is supplied by the
client the work value has to be derived after deducting the
above costs
Is This Answer Correct ? | 65 Yes | 24 No |
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