CA Deepak Soni (Chartered Accountant) (342 Points)
22 January 2009Is VAT and Service Tax applicable on Luxury apartments and if yes than wht are the rates???
let me also know any relevant notifications regarding the topic
RAJU
(LEARNER)
(1089 Points)
Replied 22 January 2009
Hi
Letting of Apartments on hire is not liable for VAT as immovable properties are outside the purview of VAT.
Under which category, you feel, Service tax is attracted on such activity. Since residential properties are not included under Renting of Immovable property services, the same will not be exigible to Service tax also.
However, there is liability to Luxury Tax on such activity treating the same as Hotel.
Rgds/Dharmaraju
CA Deepak Soni
(Chartered Accountant)
(342 Points)
Replied 12 February 2009
ya but if luxury tax is applicable than what are the rates and where should i find them
RAJU
(LEARNER)
(1089 Points)
Replied 12 February 2009
Luxury Tax is a State subject, hence, each State will have its own enactment for levy of tax. Your can refer the Luxury Tax Act of your State for rate etc.,
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