GOWO Housing ** Service Tax On New Construction - From GOWO **

APPLICABILITY OF SERVICE TAX ON RESIDENTIAL HOUSES

w.e.f. 01 JULY 2010

Dear Members,

 

The Central Government, vide its Notification No.1/2006-ST dated 1.3.2006, as amended by Notification No.29/2010-ST dated 22.6.2010, w.e.f. 1.7.2010 and Notification No.36/2010 dated 28^th June, 2010, has brought the “Construction of Complexes” under the taxable service net under the aforesaid Service Tax Act. Accordingly all Residential, Commercial or Industrial units constructed and allotted/sold are now subject to Service Tax at appropriate rate. The rate of Service Tax applicable on various Sub-heads under which payments are to be made for the Residential Units are given below. The aforesaid Service Tax is applicable on all payments made by members on or after 1^st July 2010. All payments received upto 30^th June, 2010 are exempt from the aforesaid Service Tax. It may please be noted that the Service Tax is linked to the actual date of payment and not linked with the date of Demand.

 

Sl. No.	Activity	Applicable Tax
01	Construction of Complex Services (All Construction Activities excluding Special Services)  (BSP)	Service Tax  Education Cess Secondary & Higher Education Cess	2.5%  .05%  .025%
			2.575%
02	Special Charges (PLC, IDC, EDC, Electric Substation Charges, One time Lease Rent & Additional Basement Storage)	Service Tax Education Cess Secondary & Higher Education Cess	10%  .2%  .1%
			10.3%
03	Club or Association Services	Service Tax Education Cess Secondary & Higher Education Cess	10%  .2%  .1%
			10.3%
04	Management, Maintenance or Repair Services. -                          Maintenance Advance -                          Maintenance Charges	Service Tax Education Cess Secondary & Higher Education Cess	10%  .2%        .1%
			10.3%
05	Exempt Services – Car Park
06	Other Services - IFMD		Nil

 

 

• For all payments after 30^th June, 2010 members are requested to add the Service Tax amount (as per table above) and pay along with the Demand Amount.
• In case of any clarification, you may please send clarification mails to gowoindia@gmail.com
• Payments can be made to respective contractors / builders or to GOWO for consolidation and payments to the Govt.
• When making payments kindly followup on email and give your breakup of tax please. This will help us in streamlining the individual accounts of members.

 

 

Thanks & regards,


Preeti
Coordinator - 9818683982
Government Officials' Welfare Organisation (GOWO)
www.gowo.co.in
gowoindia@gmail.com