Residential apartments

This query is : Resolved

SSharad S Mahiswari (Querist)
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28 November 2012 We are constructing residential apartments on our land and want to sell to individual owners.

Is service tax applicable to the buyers to be paid to us for submitting in the government?

If yes at what rate it is to be collected?

Also, when is this service tax payable - at time of registration or as we receive the instalments.

Viral Vora

Viral Vora (Expert)
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28 November 2012 You have to collect service tax @ 12.36% from the buyer. However abatement to the tune of 75% is available as per notification no. 26/2012, item no. 12 if conditions laid down are satisfied.

Hence effective rate is 3.09%.

Service tax is payable as and when instalments are received from buyers. Not at the time of regisrtation.

SSharad S Mahiswari

SSharad S Mahiswari (Querist)
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28 November 2012 Thanks a lot sir,

If it is handy pls forward the notification no 26/2012 item no 12 for reference

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