My one client is purchasing residential flat from Builder. Builder is charging service tax along with Sale value. Is it right? Please tell me also what percentage is applicable for service tax on it. Please specify calculation.
25 February 2014
1. If you have purchased under constructed flat then u are liable to pay Service tax on 25% of flat value. 2. If you hv purchased flat after receipt of completion certificate, (Ready Flat)-Exempt from serviceTax 3. If you hv purchased Under constructed flat but Area of flat below 60 Sq Mtr and under 20 Lacs - Exempt from Service tax. 4. In Maharashtra, every buyer have to pay 1% VAT on Sale value. Thanks
CAclubindia
