APURVA SATISH KALANTRI (Practicing Chartered Accountant) (26 Points)
25 August 2011
There is a case where Builder has asked the assessee to pay service tax on the consideration amount of the flat. The registration was made in February,2010. The possession is received in August,2011.
So, plz guide whether Service Tax is payable as per the amendment w.e.f. 1st April,2010. If yes, then at what rate ?
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 26 August 2011
If it is sale of immovable property and any amount has been paid to developer prior to completion , service tax is payable. Also, if it is construction agreement , service tax is payable. Rate depends on scheme opted by developer. Might be 4.12 % of whole amount or 10.3% value of service ie. labour.
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