Please let me know in brief the existing provision of service tax in case of sale of semi finished flats and fully finished flats by builders-- which are being sold now and also in case it has been sold earlier??? what is the rate and on what amount it is chargeable (sale deed amount/amount of sale agreement or construction cost or what)?//
Sale of flat is liable to service tax from 01-07-2010. Tax is payable only when payment is received prior to completion certificate. 4.12% on gross value of flat or 10.3% on 1/3rd of value. Value is the gross amount payable to the developer less VAT.
Hello Mr. Unnikrishnan,
I am from Pune (Maharashtra). My builder is charging me service tax on following amounts:
Rs. 34,75,200 (total sqft * rate per sqft) - cost of property
Rs. 10,000 - charges and expenses for formation of association of apartment owners.
Rs. 75,000 - for MSECDL (electricity) meter deposit, transformer charges, common meter installation charges.
Rs. 65,000 - Towards maintenance charges of society for 3 years after possession of said flat.
My queries:
1. According to my knowledge, service tax is applicable only to the construction cost. Am I liable to pay service tax on 1.5 Lakhs (10,000+75,000+65,000)?
2. Is service tax applicable on amount paid before July 2010? My agreement was done on 14th July 2010 but I paid the booking amount of 5.5 Lakhs in June 2010.
3. Is VAT applicable on construction cost too?
Please help.
Thanks in advance,
Anil
CAclubindia
