Service Tax on Builders

2 comments Sunday, June 16, 2013



The revenue and the builders have always been at dispute when comes to leviability of service tax on the consideration received in advance by the builders/developers from the prospective buyers of immovable property to be constructed.


After the negative list regime the construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly has been declared to be a service liable to service tax. However, if the entire consideration from the prospective buyer  is received after issuance of completion certificate by competent authority then it is outside the purview of declared service.

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No disallowance of Input Tax Credit for merely not charging VAT seperately in VAT invoice

0 comments Thursday, June 6, 2013

Punjab VAT Tribunal in The 21st Century Builders and Engineers vs State of Punjab VSTI 2013 17 C-388 has held that input tax credit cannot be disallowed merely on the technical ground that VAT has not been charged separately in VAT invoice, when tax charged on such VAT invoice is duly deposited by the seller.
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