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Service Tax on Flat Booking

20 March 2010

If someone has booked flat in FY 2009-10 in a society. Whether it will attract service tax on balance payment not paid till 31st march 2010 ? And if yes then what is the exact service tax rate to be paid ?

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14 Replies

CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27199 Points)
Replied 20 March 2010

Till 31st July.It Will Not Attract Service Tax............

1 Like

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Pragnesh (AM - Taxation) (1259 Points)
Replied 20 March 2010

Service tax will be applicable only after July 2010 on under Construction Flat not on completed flat or resale of flat.

1 Like

Abhay (Practice) (31 Points)
Replied 21 March 2010

Thanks for information.

My querry is what is basis for service tax applicable after July 2010 instead of Apr 2010 ?

Abhay

CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27199 Points)
Replied 22 March 2010

@ abhay

It Will Be 10.3% * 1/4 = 3.075 %

Abhay (Practice) (31 Points)
Replied 22 March 2010

Dear Ayush,

Serv Tax rate is okay, but why applicable after 31st July?

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Pragnesh (AM - Taxation) (1259 Points)
Replied 22 March 2010

Dear Abhay applicability of Service Tax is proposed in Budget 2010 actual amendment is after passing of Finance Bill in parliament which is suppose to in July month. This is my view.

CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27199 Points)
Replied 22 March 2010

Originally posted by : Pragnesh
	Dear Abhay applicability of Service Tax is proposed in Budget 2010 actual amendment is after passing of Finance Bill in parliament which is suppose to in July month. This is my view.

I Think There is no such logic to say that why it applicable from july not from say april......

but ans given by pragnesh may be considered

ragesh (EA 2 VP Mktg) (24 Points)
Replied 22 March 2010

Dear all, please help me

My builder is insisting me to pay the balance amount before 31st March 2010 (bank loan amount) and get it registered in my name for avoiding service tax, whcih is proposed in the Union Budget 2010.

Therefore, i would reqeust you to kindly provide me expert opinion.

I have booked a flat in Bangalore during August 09 and 90% of the construction is completed. I have also arranged bank loan and only Rs.5.00 lacs to be released by LIC HFC. Now I understand that ST has been reintroduced. Hence please confirm, the ST is applicable to me, as I have booked in aug 09. Further please inform me if the registration is taken place before 31.3.2010, the reintroduced st is applicable?

Pl help

ragesh (EA 2 VP Mktg) (24 Points)
Replied 22 March 2010

Originally posted by : ragesh

Originally posted by : Pragnesh
	Dear Abhay applicability of Service Tax is proposed in Budget 2010 actual amendment is after passing of Finance Bill in parliament which is suppose to in July month. This is my view.

I Think There is no such logic to say that why it applicable from july not from say april......

but ans given by pragnesh may be considered

Whetehr ST will be in retrospective effect....... den?

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Dear all, please help me

My builder is insisting me to pay the balance amount before 31st March 2010 (bank loan amount) and get it registered in my name for avoiding service tax, whcih is proposed in the Union Budget 2010.

Therefore, i would reqeust you to kindly provide me expert opinion.

I have booked a flat in Bangalore during August 09 and 90% of the construction is completed. I have also arranged bank loan and only Rs.5.00 lacs to be released by LIC HFC. Now I understand that ST has been reintroduced. Hence please confirm, the ST is applicable to me, as I have booked in aug 09. Further please inform me if the registration is taken place before 31.3.2010, the reintroduced st is applicable?

Pl help

RAMIT P. MASASLIA (CHARTERED ACCOUNTANT) (38 Points)
Replied 22 March 2010

In case of Ammendments in INDIRECT TAX they are applicable as soon as they are announced & hence "SERVICE TAX WILL BE APPLICABLE TO ALL THOSE WHO BUY UNDER CONSTRUCTION HOUSE AFTER 26th FEB."

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ragesh (EA 2 VP Mktg) (24 Points)
Replied 23 March 2010

Originally posted by : RAMIT
	In case of Ammendments in INDIRECT TAX they are applicable as soon as they are announced & hence "SERVICE TAX WILL BE APPLICABLE TO ALL THOSE WHO BUY UNDER CONSTRUCTION HOUSE AFTER 26th FEB."

ok sir, it means that no need of immediate disbursement of loan amount for getting the flat registered before 31.3.10.

Sachin (Chartered Accountant) (419 Points)
Replied 25 March 2010

Dear Rajesh,

please write me your query in detail sothat i can give you proper advice my email id is sachinagarwalcallb @ gmail.com

SANTHOSH (ACCOUNTANT) (25 Points)
Replied 27 March 2010

Originally posted by : AYUSH AGRAWAL
	@ abhay It Will Be 10.3% * 1/4 = 3.075 %

Dear Abhay

10.3% * 1/4 = 2.575% only. I think you have calculated 12.3% * 1/4 = 3.075

ganesh (officer) (41 Points)
Replied 20 October 2012

Hi Ayush/ Pragnesh,

I have purchased a underconstruction flat fronm exowner, and exowner purchased this flat presviously from builder, now the building is still under construction who will pay service tax , the exowner or me(second purchaser).

Exowner made his agrrement already with builder value at Rs 597000/-

and I made agrrement at value Rs 11,11000 / -

Please advice