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Levy of Service Tax on Underconstruction flats

This query is : Resolved 

04 August 2010 Dear Experts,

I have booked a flat few months back in Noida. Now my builder Logix Infrastructure Pvt Ltd is charging Service Tax on payments made after 1st July 2010 at the rate of 2.75 on Basic Sale Price and 10.33 on payments made towards other charges, particularly including the Lease Rent (which we buyer have to pay to Noida Authority). Is the builder right in collecting Service Tax on Lease Rent.

04 August 2010 ST on basic sale price 2.58% and on rent 10.3%



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