Service tax on residintial unit

if  we are run a real estate company and we have sale bunglow in two part , first in registery part and second is construction agreement is there any levy of service tax, our turnover is more than 10 lakh, please advice me where service tax apllicable.

Replies (3)

Dear Nikhil,

You are in real estate business. When you sale a fully constructed property then there is no service tax applicable. But if  In intial, you collect money from buyer and transfer possesion to buyer after completion of construction, then service tax is applicable. As you have collected money from buyer and transfer the risk and reward to buyer so now you are constructing building for buyer. So it will come under the service tax.

Regds

Mr. Nikhil

Consequent to the amendment to the defn. of erstwhile Const. of Complex service w.e.f 01.07.2010, any amt. recd before obtaining completion certificate is taxable, as deemed service is provided. Abtmt. of 75% is available and effective rate of service tax would be 25 X 10.3% = 2.575% effectively on the amt recd. prior to 01.04.12. After the s.t rate is enhanced to 12.36% w.e.f. 01.04.2012, the same would be 3.09%. Though Secn 65 is done away w.e.f. 01.07.2012, the said service is now a declared service under Secn. 66E sl.no. (b)

Mr. Nikhil

Consequent to the amendment to the defn. of erstwhile Const. of Complex service w.e.f 01.07.2010, any amt. recd before obtaining completion certificate is taxable, as deemed service is provided. Abtmt. of 75% is available and effective rate of service tax would be 25 X 10.3% = 2.575% effectively on the amt recd. prior to 01.04.12. After the s.t rate is enhanced to 12.36% w.e.f. 01.04.2012, the same would be 3.09%. Though Secn 65 is done away w.e.f. 01.07.2012, the said service is now a declared service under Secn. 66E sl.no. (b)

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