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Service Tax on New House

1607 views 4 replies
Have purchased new flat and registration was done  on 10 Th Feb 2006, now do i have to pay service tax?
If yes then what amount ?
My registration cost comes to around 17 Lacks.
Replies (4)
you are not liable to pay service tax.

Tax liability arises in those cases in which you have engaged a contractor to construct for you. Here you have purchased house, it is sale and hence no tax.
Hello Anurag Shinde,

You need not worry at all please.


Service tax is applicable only on the rendering of the service which comes under the bracket of service tax.

If you have purchased the flat from the contractor/property dealer i.e. real estate agents, then he will levy you service tax @ 10.2% ( 12.24% is wef 18/04/2k6) which you have to pay.

It shall not paid by you seperately to the deptt. that u go to the deptt. and deposit tax saying that take the money of s tax because u have purchased a flat.

Rather, this amount shall be levied in the bill levied by the contractor.

For example
specimen of the bill
commission                   100000
s tax @ 10.2%                 10200
Total                             110200

You simply pay him Rs.110200.00


Service tax shall be computed on the amount of brokerage/commission you had paid to him for providing you such service.

It shall not at all be computed on the sale price of the flat you had purchased since that sale-puchase of flat comes under Tranfer of Immovable Property Act( not VAT, not sale tax. )


Vishal Manchanda
Chartered Accountant
011 55173716
0 9242 70 10 74
manchanda_vishal2005 @ yahoo.com


I am requesting all other viewers of this reply, if there is any suggestion or improvement in this answer, kindly post here.

Thank You once again
Mr. Vishal Manchanda ki hal chal hai.
Sir here u have tried to levy service tax on sale transaction, sir plz tell me what is the logic behind it.
Thanx reply soon & once again ki hal chal hai?
Mr. Vishal Manchanda ki hal chal hai.
Sir here u have tried to levy service tax on sale transaction, sir plz tell me what is the logic behind it.
Thanx reply soon & once again ki hal chal hai?


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