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Service tax on flats

1558 views 4 replies

SAMEER

CHARTERED ACCOUNTANT

304 Points Posted on 05 October 2007

I baught a flat at a cost of Rs 9 lacs, my builder has reistered the flat under prakoshth adhiniyam as undivided share in a common land at rs 3 lacs , and he has made aseparate agreement for construction of flat with me for 6 lacs, how much service tax is payable and how can i know the exact amount of tax he has paid in respect of my flat

Replies (4)

Anand

481 Points Posted on 06 October 2007

Service tax is payable by the developer @ 2% on the total amount (provided he avails composition scheme) else he has to pay @ 12.36% after availing Input credit.

OFFICESELVA

Service

515 Points Posted on 28 October 2007

Works Contract Service came into effect from 01/06/2007 onwards only. The question itself was asked on 10/05/2007 and the flat already bought. Therefore, I think the same will attract ST @ 12.36% if no abatement is availed.

inder jain

Tax Author

43 Points Posted on 03 November 2007

u would be required to pay service tax @ 12.36% on 33% of 6 lacs, being the construction amount/work contract if the builder does not execute sale deed in respect of the superstructure. In case the builder executes a sale deed in respect of the land & superstructure, then it is a case of transfer of property andno service tax is payable.