Aravind Balasubramanian (Software Engr. ) 13 August 2010
Dear Sir/Madam,
Can you throw some light on what works contract service tax means? I bought a flat last year in Chennai Mugalivakkam area and it is currently under construction. My builder has asked me to pay works contract service tax at the rate of 4.12% on the payments made by me so far. Is this the same as VAT? Thanks in advance for your reply.
Regards
Aravind
Shayan Khan (B.com) 13 August 2010
no its not VAT. its a new service tax which is brought in with effect from 1/7/2010. servie tax is applicable on the payment mede on or after 01/07/2010.
DR. KANHAYALAL SHARMA (TAX CONSULTANTS) 16 August 2010
Thsi new levy of Service Tax is illegal and an attempt by the Govt. to over reach the Supreme Court and encroach on other's powers. It presumes that payments made as advanxce to developers for apartment before completion is for a service and ervice Tax shall be levied. I am sure it will be struck down by the Supreme Court.. The developers and builders are sure to challenge. Some consumers too should challenge it.
DR. KANHAYALAL SHARMA (TAX CONSULTANTS) 16 August 2010
| Originally posted by :KANHAYALAL SHARMA | ||
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Thsi new levy of Service Tax is illegal and an attempt by the Govt. to over reach the Supreme Court and encroach on other's powers. It presumes that payments made as advance to developers for apartment before completion is for a service and Service Tax shall be levied. I am sure it will be struck down by the Supreme Court.. The developers and builders are sure to challenge. Some consumers too should challenge it. |
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