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Service tax on flats

SAMEER (CHARTERED ACCOUNTANT) (304 Points)

05 October 2007

I baught a flat at a cost of Rs 9 lacs, my builder has reistered the flat under prakoshth adhiniyam as undivided share in a common land at rs 3 lacs , and he has made aseparate agreement for construction of flat with me for 6 lacs, how much service tax is payable and how can i know the exact amount of tax he has paid in respect of my flat

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4 Replies

Anand (481 Points)
Replied 06 October 2007

Service tax is payable by the developer @ 2% on the total amount (provided he avails composition scheme) else he has to pay @ 12.36% after availing Input credit.

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OFFICESELVA (Service) (515 Points)
Replied 28 October 2007

Works Contract Service came into effect from 01/06/2007 onwards only. The question itself was asked on 10/05/2007 and the flat already bought. Therefore, I think the same will attract ST @ 12.36% if no abatement is availed.

inder jain (Tax Author) (43 Points)
Replied 03 November 2007

u would be required to pay service tax @ 12.36% on 33% of 6 lacs, being the construction amount/work contract if the builder does not execute sale deed in respect of the superstructure. In case the builder executes a sale deed in respect of the land & superstructure, then it is a case of transfer of property andno service tax is payable.