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Service tax for a builder

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Varghese N A

Managing Partner

22 Points Posted on 27 May 2015

I am a new builder constructing 15 apartments in Cochin, Kerala.

My flats size is 1988 to 2210 saleable area, that is including common area.

Pricing initial is 4950 per sq.ft

What is the rate at which service tax collected?

In the total cost land cost is separated, so what is the ST rate for rest of the construction cost?

Replies (3)

BILAL CHAUHAN

Chief Finance Officer

52 Points Posted on 27 May 2015

As per notification no. 09/2013, if you are receiving any consideration/booking amount before obtaining Occupancy Certificate then Service tax is payable @ 4.2% (i.e. 30% of 14%) w.e.f. 01/06/2015. If the residential unit fulfills both conditions i.e.

1) Carpet Area Less than 2000 sqft and

2) Consideration less than 1 Cr then

Service tax is payable @ 3.5% (i.e. 25% of 14%) w.e.f. 01/06/2015