[aurangabad_ca] Service Tax-inclusion of Builders
Dear SNK,
I have gone thru your excellent analysis of Direct and Indirect Taxes.
I have specific query on inclusion of Builders receiving payment in advance for their commercial as well residential complexes?
a) Whether construction of residential complexes below 12 units are covered under construction?
b) What about element of land value involved in transaction? It constitutes around 70% of sale value in metros and around 20% to 30% in tier 2 cities.? As per my understanding, this element does not attract service tax? Abatement is available for construction material only.
c) Service Tax is charged on rendering of service, though deposited on receipt basis. How to divide the sale consideration between before enactment and after enactment for already booked areas?
d) The builders are presently paying Service Tax to Contractors under compounding scheme, for which no input credit can be claimed? Will it be beneficial for the builder to pay at full rate and claim input credit for the same? What about the unsold stock lying at the date of completion certificate?
Please share your views on above. Does any representation from ICAI/Industry association required to resolve the issue.
Regards
CA Vijay Kapur
From: SNK <snk@snkca.com>
To: aurangabad_ca@
Sent: Wed, 3 March, 2010 5:57:19 PM
Subject: [aurangabad_
CA GIRISH R. KULKARNI ( AURANGABAD ) CELL NO 92253 06814
Dear Colleagues,
We are forwarding herewith a copy of Budget Analysis, 2010 on Direct & Indirect Taxes with suitable illustrations at appropriate places for easy comprehension of the amendment.
Thanks & Regards,
SNK
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AURANGABAD_CA is a Yahoo Group for the benefit of CA and other professional. It is especially meant for written discussion within group members and circulate the information among its members. The mail may contain such research/advice/opinion/information/fact provided by any member or moderator and every contain of the mail or information of yahoo is always subject to the Accuracy and of the description of facts.
The Aurangabad_CA , its moderator/owner do not claim that contains in mail/information obtained after reading as a complete and accurate disclosure of relevant fact(s).
Considering all above facts m the transaction based on above mail may not complete without confirming proper statue/authority/person. Therefore any action/transaction taken on basis of this mail do not imply the accuracy or value . Further this Group�s Owner/Moderator/Member are not liable for any damages or costs suffered due to action/transaction based on information on this Yahoo Group.
For Seeking any Clarification you may mail only to Group Moderator on
girishkulk@gmail.com
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