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Under the new GST what will be the applicable rate for individual house construction if we engage an contractor to construct. I understand the guidelines talk only about labour contract but not about building construction contract which includes material and labour.
Since contract company charge consolidated bill for house construction which includes material and labour, they are not ready to bifurcate the material cost and labour cost.
They are demanding to pay(GST) 18% of over all construction contract value. Its legal or ilegal ?
Please clarify me to come out of this issues.
In case of personal loan, a couple of charges includes service tax. Normally, the processing fee and prepayment charges are the service tax levied. But now, GST rate will be charged. Processing fee used to be 1%-2% of the loan amount plus service tax across banks in India. If loan amount is Rs.9 Lakhs, the processing fee could be Rs.9000 to 18,000. Service tax was expected to be Rs.1350 to 2700. Adding the processing fee ranges from Rs.10,350 to 20,700 before GST. But now GST coming into effect, the processing fee would jump to Rs.10,620 to 21,240. The effect of tax rise is not pinching at all. So, no worries, as you can come all the way to apply for personal loan online at GST rate.
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