Service tax on flat value

There is no service tax, if the whole amount is paid after issuance of completion certificate.

I have mentioned that it is under construction. 1st floor is completed and my apartment is on 2nd floor. I am going to purchase before completion.

 

From the above discussion, I reckon that Service Tax has to be levied on 30% of Gross Amount Charged (Rs.15,00,000).

This means Taxable Value = (Rs.15Lakhs x 30%) = Rs. 4.5 Lakhs 

Hence the Service tax may be levied @ 15% on Taxable value = Rs.4.5 Lakhs x 15% = Rs.67,500/-.

 

For Technical info on taxability of above service, one may refer Section 66E(b) of Finance Act, 1994 - CONSTRUCTION INTENDED FOR SALE.

As the amount is paid before the issuance of completion certificate, this is declared service as per section 66 (e) of Finance Act, 1994. Service tax shall be levied at 30% on the gross amount charged. since the gross amount charged is Rs 15 lakhs, service tax shall be on Rs. 4.5 lakhs (i,e 30% of Rs. 15 lakhs).So amount of service tax shall be: -
1.Basic service tax- 14% of 4.5 lakh= Rs. 63,000
2. Swatch bharat cesa- 0.5% of 4.5 lakhs= Rs. 2250
3. Krishi kalyan cess- 0.5% of Rs. 4.5 lakhs= Rs. 2250.
So total service tax shall be Rs. 67,500

How about the Service Tax and  VAT calculation on the sale consideration (64.31lacs) of semifinished flat under construction, if the sale consideration is devided into Sale deed (25.80lacs) and Construction agreement (38.51lacs)