I've booked one flat in M'lore in June - 2011. which is under construction goine to complete in Jan 2013
Now the builder has given the price per Sq ft & added service tax & cess seperately
Coul you anyone guide me whether service tax/cess applicable ? if yes then how builder can recover from us.
Thanks & Regards,
Vijay
Yes. Service tax is applicable...
Builder may opt to take abatement and can pay service tax either on 33% of value or 25% of value.. But in both the cases he will not be entitled for Cenvat credit,..
Further he can opt to pay service tax on full value then in this case he can Cenvat credit..
Accordingly he charges service tax from Flat buyers..
Regards
Pinky Agarwal
CAclubindia
