Latest Answer: Hi all,
VAT is applicable only on Material cost @ 14.5% and ST is applicable only on Labour & Services Cost @ 12.36%. Please note that VAT may vary from state to state.
Latest Answer: Hi,
Hi,
In budget 2015-16, it was proposed that a homebuyer will pay a service tax of 14% while buying a property that’s under construction instead of the current 12.36%.
As service tax is charged only on the construction cost, the effective rate on the entire value of a property below Rs.1 crore is 3.09% (12.36% on 25% of property value) and for a property above Rs.1 crore, the effective rate on the entire value of the property is 3.71% (12.36% on 30% of property value).
