Q:
How will be service tax calculated on new apartment (under construction) in Hyderabad area and where should we pay service tax?
for example, if I am buying a flat in Hyderabad of area 1500 sft @ 45 lacs including parking and amenities like electricity, water, lift, generator etc.
Service Tax would be on 25% of the value of the property and not on the entire cost. Tax would be applicable only on the cost of labour or services of the builder or developer. All costs of land and construction material of the property would not fall under the purview of service tax.
Thanx Siddarth.
10th August 2012
A service tax of 10.3% was introduced by the Finance Minister on all under construction property purchased from a builder or developer.
servives tax has been increased to 12.33% from this financial year
service tax has been increased to 12.33% from 2012-2013
10th August 2012
You can calculate the service tax in this method 10.3% of 1/3 of 45,00,000.
there is a confusion on this,as the tax paid should be12.33 service tax on 33% or 25% on total value .
10th August 2012
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