Hello,
1. I went through some similar posts, but just wanted to clarify. A builder I came across is charging 4.95% Service Tax on Basic Cost (i.e. Construction Cost + Car Parking) which is apparently 12.36% of 40%. Any idea why this might be so? I saw some of your replies which said that it should only be 12.36% of 25% and NOT 40%.
2. Can the builder charge Service Tax on the Corpus Fund being collected, considering there is no “Service” per se rendered for it?
3. What can all be included in the Basic Cost while calculating service tax? While the builder has listed basic cost as land cost + construction cost, he himself has included Car Parking charge while calculating the Service Tax.
4. How can I explicitly ask the builder about the CENVAT credit for Capital goods purchased? What if he tells me he has not/cannot avail of it? There is no way for me to verify this right?
5. Do you know if VAT is applicable for construction in TN and if so, how much?
Thanks a lot!