St on individual villas

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Anand (Querist)

05 December 2015 Dear Experts,
I am taking over a villa in Tamil nadu. It is a gated community, consists of 200 villas and has common amenities like, swimming pool, water tank, part etc (all are yet to be constructed).

I have been paying the money as per some schedule and i have availed loan from a PSB, which releases the amount as and when a particular stage is completed.

As I went through the Net, I see, there is no ST on land portion of deal. But kindly clarify, whether I have to pay Service tax for the construction part of the deal?. if then, which part of it are applicable...

Initially, the promotor did not say anything about it.. now he is claiming it.

Please clarify.. thanks in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

06 December 2015 If your Villa value is more than 1 crore and carpet area is more than 2000 sq feet you have to pay service tax on 30%(25% for less sq feet and value) value including land.

Anand

Anand (Querist)

10 December 2015 if the villa cost is 32 lakhs out of which land cost is 13 lakhs and its area is 1200 sq ft (land is 1750 sq ft)..will it attract service tax.. and what rate it may attract..?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 December 2015 Yes it will attract service tax. 14.5% service tax payable on 25% of cost of villa including land cost.

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