Hi all,
Can you please help me to understand more about service tax on house properties.
I have booked an flat in Jan 2010 in Bangalore (HSR Layout) which is under construction.
Estimated completion date is Jan 2011.
The project has 128 flats with basic amenities.
Cost of my house is.
Cost Land 5,50,000
Cost of construction 13,94,000
Total Base Cost 19,44,000
Open Car Park 1,00,000
Club Membership 1,00,000
BESCOM 1,20,000
Total Cost of Flat 22,64,000
I read that if the cost of flat is less than 20 Lakhs (excluding parking) no service tax will be applicable.
Can my builder charge service tax on my purchase.
Can you please help me to understand this.
Thanks & Regards
Prasad
Note : The house which i have booked is the smallest (both cost and area wise) in the project.