« Top Headlines » Open DEMAT Account in 24 hrs  New Income Tax Act: ITR forms to be issued prior to FY28, says govt  GSTR-9C Explained: Turnover Limit, Due Date, Statement Format & How to Prepare It in Tally Prime (2025 Update)  Will Income Tax Department release new ITR forms by January 2026? Finance Ministry says this  The Government of India has strengthened MSME protection through strict payment rules, ensuring that Micro & Small Enterprises receive timely payments from buyers. Under the MSME Development Act (MSMED Act), 2006, buyers must make payments within:  ITR Refund Delays in India: Why They Happen & How to FastTrack Your Refund in 2025  ITR Refund Delay: From Bank Errors To Department Checks, 5 Big Reasons Your Refund Gets Stuck  Income Tax Slabs 2025: New Vs Old Regime; Which One Is Better For You For FY2025-26?  Seamless Integration: How Tally Prime Connects Businesses to the Digital Economy  Govt to notify new ITR forms, Income Tax Act 2025 rules by January 2026: CBDT chief  Digital Efficiency for MSMEs: The Tally Prime Advantage  5 Ways Tally Prime Reduces Cost and Boosts Productivity for Startups «  When a mega merger runs into rough weather... Avg Chandigarh resident earns Rs 1.09 lakh/ month... » Tax component may be refunded August, 08th 2006 Flat buyers may be spared the 12.2% service tax, with the government making it clear that a builder who does construction work on his own do not have to pay service tax. Some builders, who have added the service tax component to the cost of the flat, have parked these proceeds in an escrow account. Its possible the money may be refunded. The finance ministry has, however, held that in a case where the builder, promoter or the developer builds a residential complex with more than 12 units by engaging a contractor, the contractor will be liable to pay service tax on the gross amount charged for construction services. Builders did not contest the levy of service tax on contractors. They have only opposed levy of service tax on the sale of a flat, said an industry analyst. Residential complexes were brought under the service tax net from June 05. The government had said service tax will be charged only on the value of the contract for constructing the block. Land value will be excluded while computing service tax. Further, the abatement of 67% on the value of the contract will be allowed if the construction contract is turnkey the contractor supplies the material and labour. Builders contended they are not liable to pay the levy because they have the rights to develop the property. They cited a CBEC notification which said estate builders who construct buildings for their own use or rent it out or sell it out subsequently were not taxable service providers. However, the directorate of service tax went by a SC ruling which said that a works contract included in any agreement for carrying out either for cash or for deferred payment or for any valuable consideration, the building and construction of any movable or immovable property would attract a turnover tax.