friends (Professional) 14 January 2011

Service Tax on Construction Work

This query is for a construction plumbing contractor.

1- Service tax collected on Rs.1000000.00, apart of his total turnover Rs.3000000.00

my question is, what would the service tax liabilities for the Assessess. (A.Y.2011-12)will he liable to pay the service tax on total turnover or only the amount on which he collected the tax.

2- What is the service tax exemption limit for civil construction (plumbing work) (Residential)

Thanks

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2 Replies

Freer (xbcbx) 26 January 2011

In all other cases, the builder will be liable to pay the service tax. It is well known that in most of the cases, builder constructs buildings mainly on raising funds from prospective buyers. Further, even after building is completed and ready for occupation, there is delay in obtaining building completion certificate from the authorities

Sandeep Shetty (Senior Executive) 05 February 2011

Hi,

your business is into construction services. For this service there is not limit of exempt turnover on which you are not entitled to collect service tax. You are liable to pay service tax on 4 croes irrespective of collection of service tax.

Regards

Sandeep Shetty