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ST registration - builder, Service Tax |
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ST registration - builder |
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dear experts, what are the criteria to decide whether a builder should take ST registration under 'construction of residential complexes' or 'work contract services? Scenario: the builder intends to construct a building containing more than 50 apartments. he is registered under 'work contract' as per state VAT rules. the entire construction is sub-contracted. steel, cement etc are provided by the builder. the land belongs to the builder and the client gets his share only after the construction is completed. under what all circumstances, the department can insist that the builder should take ST registration under 'construcion' services? Posts / Replies Showing Replies 1 to 3 of 3 Records Page: 1
The liability under service tax in the hands of the contractor would depend on the substance of the contract. If the contract is for a service i.e. involving no movement of goods, then the said service contract is liable to tax under Construction Service. On the other hand, if the contract involves both material and labour, then the said contract is liable to tax under Works Contract.
from the scenario given, what do you think- construction or WC ?
Obviously the taxable services in this scenario would be Works Contract Services. Page: 1 Old Query - New Comments are closed. |
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