I have booked a flat on 31st march 2010 and registered on 22nd april 2010 and total cost of flat is Rs. 3350000 approx. I have paid Rs. 3300000 by 30 april 2010. Remaining Rs. 50000 will be given at the time of possession i.e. in nov 2010. So I want to know there is any service tax liability and on which amount i.e. Rs. 3350000 or Rs. 50000 ?
Thanks
The new rule for the service tax on construction service would be effective from 1apr 2010. Under this the amount paid for the under construction house by a buyer to the developer is chargeable to service tax but subject to only 33% of the total amount of flat .
As per your query, it is clear that you will paid Rs. 3350000 for the under construction flat, hence it would be chargeable to service tax and the amount of Rs 50000 is paid after completion so this is not taxable
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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