Service Tax on Real Estate.

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vipin (Querist)
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14 September 2010 Is there any exemption limit for service tax on real estate.. i heard that service tax would not be levied in case cost of house was less than 20 lakh? Please confirm the same.. Also wheter i will be liable to sales tax and service tax at the same time or only one will be applicable...i am in real estate and develop houses on contract basis. the cost of each house is less than 20 lakh..

Please guide me on the following...

thank you

Rajan Babu

Rajan Babu (Expert)
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14 September 2010 There is Real Estate Agent' Service w.e.f. 16.10.1998. If you give advice/consultancy on design, development, evaluation, maintenance, acquisition, management of Real Estate, you are liable for service. There is SSI exemption for Rs. 10 lakhs for advice/consultancy charges. Department has clarified that activity of actual construction of any building, carried out by builders/developers does not attract service tax within the meaning of Real Estate agent.

But If you construct building or buildings having more than twelve residential units (flats) you are liable for service tax under Construction of Residential complex services. There is 75% abatement from gross receipt (if cost of materials included)

vipin

vipin (Querist)
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14 September 2010 thank you..
what about applicability of Sales tax??
Is there any exemption limit as regards cost of house being less than 20 lakhs

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vipin

vipin (Querist)
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14 September 2010 thank you..
what about applicability of Sales tax??
Is there any exemption limit as regards cost of house being less than 20 lakhs