Service tax applicability on purchase of new flat

Service Tax is applicable on gross amount of consideration received by the service provider. In case of construction of residential complex service tax is required to be paid under Works Contract Service if the builder is liable to pay VAT under the state VAT Act. Taxable service means service provided in relation to construction of residential complex / execution of works contract service. Registration charges shall not be included for payment of Service Tax.

 Abatement can be claimed by the builder of 67%. So current rate shall be 12.36% less 67%