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Is service tax charged on under construction flat
21-Jun-2023 (In Property Law)
I am purchasing a under-construction flat in Greater Noida (west). Value of flat is approximately Rs 32lacs. Recently I read in a leading English daily about a High Court judgement saying service tax will not be applicable on purchase of a under construction flat if value of land and services are not separately shown. In my case I am purchasing a 965sq ft flat at the rate of Rs 3300 per sq ft. Please advise of service tax will be applicable on this amount.
As per the new rules, Service Tax will be calculated at the rate of 12.36% of the gross value of the property. But, because there is a Government abatement of 75 % (increased from 67 %), tax will be levied only on 25% of the gross value of the property. The effective rate of service tax is therefore 2.575%.
The 2010-11 budget imposed service tax on all under-construction properties from July 1, 2010. Now, according to the Service Tax Act [Section 65(105)], the developer or builder of an under-construction property has to pay service tax when he sells a property to a buyer.
The 2010-11 budget imposed service tax on all under-construction properties from July 1, 2010. Now, according to the Service Tax Act [Section 65(105)], the developer or builder of an under-construction property has to pay service tax when he sells a property to a buyer.
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Adv. Siddhant Sharma
Delhi | 200+ Answers
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SEE FIRST OF ALL TILL I SEE THE THE PAPERS I CAN'T SAY WHAT YOU WOULD BE ELIGIBLE OF.REST FOR ANY FURTHER QUERY AND ASSISTANCE FEEL FREE TO CONTACT ME AND FOR SURE ALL RIGHTLY HELP AND THE ASSISTANCE WOULD BE PROVIDED TO YOU.YOU CAN FURTHER FIX AN APPOINTMENT WITH ME AS AND WHENEVER YOU WISH.WHATEVER IS YOUR LEGAL RIGHT THAT WOULD BE SURELY HELPED OF IN ATTAINING IT.
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