Service tax on sale of flats

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 October 2012 Dear experts one of my client is the builder promoting the flats, weather he has to collect the service tax or not? pl clarify if he has to collect then at what rate on which amount? because the transaction in sale of flat will involve sale of undivided share of land and construction agreement

pl clarify

@VaibhavJ

@VaibhavJ (Expert)
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26 October 2012 Hi

Flat is sold before obtaining completeion certificate Ser Tax is to be collected along with each payment received on pro rata basis.

Rate is 25% of Standard rate, ie. 25% of 12% + 3 % cess. Total = 3.09%

See link for details:

http://www.simpletaxindia.net/2012/07/service-tax-reduced-construction.html

Rgds//Vaibhav
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