Is VAT & Service Tax applicable on Luxury apartments

Is VAT and Service Tax applicable on Luxury apartments and if yes than wht are the rates???

let me also know any relevant notifications regarding the topic

Replies (4)

Hi

Letting of Apartments on hire is not liable for VAT as immovable properties are outside the purview of VAT.

Under which category, you feel, Service tax is attracted on such activity. Since residential properties are not included under Renting of Immovable property services, the same will not be exigible to Service tax also.

However, there is liability to Luxury Tax on such activity treating the same as Hotel.

Rgds/Dharmaraju
 

 

Thanx a lot....

ya but if luxury tax is applicable than what are the rates and where should i find them

Luxury Tax is a State subject, hence, each State will have its own enactment for levy of tax.  Your can refer the Luxury Tax Act of your State for rate etc.,

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