Service tax for under-construction property in hyderabad

If the developer opted composition sheme, it is 4.12% of the gross amount. If abatement is opted , then 10.3% of 1/3rd of gross contract amount..

3) Service tax on sale deed @ 10.3% of 1/3 value excluding land cost

4) Service tax on the value of agreement of construction @ 4.12%

So does that mean only one of the component will be applicable? how do I verify that? what exactly is meant by gross contract amount? is the total valuation of the flat?

Thanks,

Somak

Gross amoun is value of flat. 3 and 4 are options. Both will not apply.

Hello Mr. Unnikrishnan can you please make it more simple with some calculations.

Is Services Tax is applicable only on Gross purchase amout of flat so

For example if property is 1325 Sq. Ft. purchase at 2300 Rs Per Sq Ft., So cost is (1325X2300=3047500)

Plus

Parking + Other Aminuties = Rs 300000

So in this case Service Tax is applicable only on Amount 3047500 Or on (3047500+300000 = 3347500)

And what will be the final calculation of it ?

Will it be 10.3 % of 3047500 or 10.3% of 3347500

Or

10.3% X 1/3 X 3047500 Or  10.3% X 1/3 X 3347500

Please clear this thing to me .. It's always very confusing when discussed with others.

Thanks in advance

Ashay

4.12% of 3347500         or        10.3% of 1/3 of 3347500

Hi Unnikrishnan.

Thats so kind of you.

Thanks for your replay.

- Regards,

Ashay

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