applicable rate of service tax on development charges

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  1. Jayshree R Batheja

    Jayshree R Batheja New Member

    Dear sir I'm purchage a flat in Ambarnath , Dist Thane ,in Maharashtra . At the time of registration i paid a service tax ( rs 90660=00) @ 3.625% on the agreement value of rs 2500960=00.& this amount is the said flat cost , but builder also charges Rs 54656=00 as a service charges @ 15% on the amount payable by me at the time of possession which he mention as a society charges of Rs 390400=00 . ( society charges includes water connection , electric meter connection , club house , infrastructure charges & others charges payable to municipal .
    As mention in this website service tax is applicable only on the carpet area , I'm confused & please suggest me your suitable opinion .
  2. ZED

    ZED Well-Known Member

    What have they charged? "Service Tax" or "service charge"?
    Service charge is not a service tax.
    Service tax goes to govt. , service charge remains to service provider.
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