Service tax on sale of flats & shops

This query is : Open

TARIQUE RIZVI (Querist)
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14 May 2016 At this moment of time I would like to collect the service tax from the flat owners on account of sale of flats and shops during the Fy 2009-10 & Fy 2011-12

Whether the working will be as follows:

Suppose Sale of Flat ........Rs. 1,00,00,000 Suppose One Crore
Add 1% Vat on Sale Value Rs. 1,00,000
Total Rs. 1,01,00,000

Add Service Tax @ ???? % on Rs.Total Rs. 1,01,00,000

In short I would like to know the rate of service tax during the Fy 2009-10 & Fy 2011-12 for selling of flats and shops.

Please guide me.,

CA Ashish Garg

CA Ashish Garg (Expert)
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19 May 2016 You are liable to pay service tax on Rs. 1,00,000/-. Service Tax is leviable on value of service and not on taxes.Further you are entitle to avail benefit of abatement of 75% on such services. Thus the value of service shall be 25% of Rs. 1,00,000/-.

The rate of tax as applicable during the relevant time was 10.30%. Further if you discharge your service tax liability along with interest before the notice from department, then you shall no be liable to pay penalty.

Department has changed the rate of interest from time to time, therefore the interest needs to be calculated on the basis of such changed rates.

However, if you have filed your returns for F. Y. 2009-10 within due time limit, then department cannot initiate any proceedings against as the same has become time barred