Service tax payable on market value or agreed value of flat

Service Tax will be paid on 25 Lacs. However, if benefit of EN 26/2012 is obtained, 25/30% of Rs. 25 lacs is the taxable value and tax @ 14% is payable on this value. (if Point of Payment is after 31.05.2015 i.e. on or after 01.06.2015). Doing so, service provider cannot avail CENVAT Credit of service tax paid on Inputs.

25/2012 exemption is available if housing project is approved by competent authority empowered under the ‘Scheme of Affordable Housing in Partnership’ framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India.