POSTED BY September 2, 2013 4:58 pm COMMENTS (2)ON
Hi, I have a case were the builder is asking me to pay ST on 40% of construction cost. now the details are below.
1. Cost of construction + carpark ( 34.85 + 2) 36.85Lakhs
2.40% of 36.85 lakhs is 14.74Lakhs, and ST is working out to 1.82Lakhs
3. Land was registered as UDS (in Chennai) so its more of a construction agreement with the builder.
Now my challenge is that 40% seems to be nowhere on the Finance website and everyplace either shows a 33% (67% is Govt.abatement) or 25%. I am not sure which one to take. please guide me on which % is to be considered for base value (25% or 33% or 40%)
Also, can i ask the builder to give me a splitup of Material and Labor?, this would essentially mean that i can pay tax only on the labor part… if that is possible, what would be the Abetement %