19 June 2012
If any flat is sold at a higher rate as compared to its starting base rate (E.g. Starting base rate is Rs.1500/- per sq. ft. & due to its location and other benefits developer is charging Rs.2000/- per sq. ft.) then on additional amount charged by developer i.e. Rs.500/- per sq. ft. Service Tax charged at full rate i.e. 12.36% or abatement of 75% will be allowed to developer.
19 June 2012
If you are showing this extra amount separately in the agreement to sale or in sale deed than yes ST will be applicable at the rate of 12.36 % and if you are clubbing the the mentioned amount of Rs. 500 in the basic amount i.e. not mentioning separately than ST will be applicable after the application of abatement rate.
I.e. Main thing how you are presenting this Rs. 500 in ATS or SD accordingly rate of ST will be applicable.
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