What is service tax on sale of residential flats ???
Lalit Kumar Gupta
(Service)
(609 Points)
Replied 15 April 2011
Hi..... Prince,
There is no Service Tax on sale of Constructed Residential flats, however, if the builders receive advance amount from thier clien against the flats which are under construction than builders are liable to pay service tax on said advance amount received.
Rate of Service Tax
10.30 % without abetment
3.399% with 67% abetment (excluding the cost of land in value of taxable service)
2.575% with 75% abetment (Including the cost of land in value of taxable service)
Thanks
Lalit
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