TaxTMI 
TaxTMI 
Dear Sirs,
We are quoting for construction of 10500 sft private commercial building in Bangalore. The contracts and payments will be routed through our company.
May I request the members to please advice what are the taxes that are applicable under building construction services.
Thank you in advance.
Regards,
Taxes for building construction contracts
14 Aug 2015 
4 Replies 
2901 Views Asked by
Service tax on building construction requires prescribed valuation, plus a building cess and state works-contract tax implications.
Service tax applies to commercial building construction contracts with taxable value set by the prescribed valuation rule that allocates a portion of contract value as taxable; a separate building-construction cess is levied on total contract value. State works-contract tax or VAT consequences and environmental, municipal and electricity-related levies also apply. Administrative guidance treats contracts regarded as works contracts for VAT as works contracts for service tax, and a previously available lower-rate composition scheme has limitations and was subsequently withdrawn. (AI Summary)
Service tax applies to commercial building construction contracts with taxable value set by the prescribed valuation rule that allocates a portion of contract value as taxable; a separate building-construction cess is levied on total contract value. State works-contract tax or VAT consequences and environmental, municipal and electricity-related levies also apply. Administrative guidance treats contracts regarded as works contracts for VAT as works contracts for service tax, and a previously available lower-rate composition scheme has limitations and was subsequently withdrawn. (AI Summary)