Service tax clause on construction of residential flat

Dear Friends,

 

I was just goin through a agreement for sale of a residential flat prepared by the builder.

In case of construction of residential flat, service tax is applicable if the sale consideration is payable before the completion of the construction.

Hence i want to ask

1. Firstly whether the Service tax will be applicable only on the part of the service performed or on the whole price.

2. suppose 50% of the price is paid within the construction period and the rest subsequent to completion of construction will the service tax still be applicable.

3.If we need to divide the total price into service and goods how should that be done.

 

Kindly guide from where can i get the replies to all these queries.

 

Regards

Ankita

 

Replies (1)

If you receive any money from the buyer prior to getting completion certificate, service tax is liable to be paid on the entire value of the flat. 40% of the gross contarct amount is the value of service upon which tax @ 12.36% is applicable.

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