Hi All
Can anyone tell whether service tax is applicable on the amount paid towards EB, registration charges and the garage parking facility during the purchase of a new apartment?
Also, please tell whether a builder has an option for charging service tax at a percentage different from 12% (as per the new budget). that is he is charging at 4.75%
Thanks in advance
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%
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