Service tax/cess on under construction house purcahse

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

For Details on Service Tax on buildings read column at:

https://www.chsguru.com/2012/01/service-tax-application-on-flat-sale.html