banner_ad

Service Tax on House Property

abatements 2268 views 1 replies

Hi all,

Can you please help me to understand more about service tax on house properties.
I have booked an flat in Jan 2010 in Bangalore (HSR Layout) which is under construction.
Estimated completion date is Jan 2011.
The project has 128 flats with basic amenities.
 
Cost of my house is.
Cost Land                    5,50,000
Cost of construction     13,94,000
Total Base Cost            19,44,000
Open Car Park          1,00,000
Club Membership          1,00,000
BESCOM                     1,20,000
Total Cost of Flat     22,64,000

 
I read that if the cost of flat is less than 20 Lakhs (excluding parking) no service tax will be applicable.

https://www.commonfloor.com/articles/amendment-in-service-tax-for-under-construction-property-1753.html

Can my builder charge service tax on my purchase.
Can you please help me to understand this.
 
Thanks & Regards
Prasad
 
Note : The house which i have booked is the smallest (both cost and area wise) in the project.

Replies (1)

ALL THE PAYMENTS YOU MAKE AFTER 01/07/2010 ARE LIABLE TO SERVICE TAX. NO EXMPTION IS AVAILABLE TO FLATS COSTING LESS THEN 20 LAKHS. FOR PAYMENT OF SERVICE TAX YOU HAVE TWO OPTIONS:

1.     Taxable value is Total payment made after 01.07.2010 (including cost of land) less 75%

2.      Taxable value is total payment made after 01.07.2010(excluding cost of land) less 67%

 

on the chosen taxable value  from the above two you pay service tax of 10% plus 3% cess total 10.3%


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details