Latest Answer: Hey Guys,
Budget 2015 has increased Service tax rate from 12.36% to 14%. The basic rate of service tax is now 14% and education cess will be levied to it. Service tax charged at the rate of 3.5% on construction service which carpet area of unit is less than 2000 sq-ft. amount charged is less than Rs.1 crore.
Q:The builder has asked to pay 16k immediately as the service tax has been revised by the government from 1st April 2012 onwards. Aren't we supposed to pay revised service tax only on outstanding amount, not on entire amount? Thanks.
Latest Answer: Service Tax rule and procedure is still unclear for number of buyers buying property in India. I feel the builder should send the buyer an email on what is actual price of property, how much you already paid and what is outstanding amount, Service tax on property etc. I think builders calculate service tax on under-construction properties on price of property but it depends on the outstanding amount. The builder cannot ask service tax for amount already paid. In case you have any confusion or need a guidance, you can ask legal expert on the same.
