Service tax for selling flat

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2015 Dear sir
i am builders, i have made some flat. i want to know. should i charge ST on selling flat or not........

regard
subham raghav

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 September 2015 If you are selling fully completed flat no service tax payable. For under construction flat you should charge service tax.

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2015 Dear sir
yes in under construction. suppose the flat worth is rs 50 lacs the customer usually given advance when the flat is under construction...

as per my above query plz tell me how much ST should i charge and will it cover reverse charges...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 September 2015 If the carpet area is less than 2000 sq feet charge service tax at 14% on 25% value of flat. No reverse charge applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2015 Dear sir, i have two following query regarding this.

(1) i have not taken contract for construct the flat. despite that i will charge ST on under construction flat (if received the payment from customer)

(2)you have earlier reply if i am selling complete flat then no ST will be applicable. but if the customer has booked the flat under construction why ST tax is applicable if the customer has booked the flat under construction after completing the flat he will pay the exact value of flat not more...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 September 2015 1 Yes you have to charge service tax.
2 As per service tax provisions service tax applicable on under construction flats.

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