One of my known booked a flat in Noida (Utter Pradesh) which value is approx 66 lakh. Builder is charging service tax @ 4.35% on 30% of flat value including parking charges and lease rent as well and taking the diffirence of service tax for those installment which had paid before 31st March,2016 since they charged earlier @ 3.625%.
Please confirm me that aforesaid charges are ok as charged by builder for the financial year 2016 since I had read somewhare online that property value is lesser than 1crore or carpet area is lesser than 2000sqft then service tax will be apply on 25% of flat value and service tax rate @ 4.35% should be applicable from 1st April 2016 onwards. Service tax is not applicable on parking charges and lease rent.
I request you to kindly clarify the aforesaid both conditions.
Thanks and regards
Manindra
CAclubindia
