Computation of service tax on under construction property according to 2016 budget

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  1. Rahi Akela

    Rahi Akela New Member

    Hi Everyone,

    Could you please help me ? I have purchase a under construction property in 14th March, 2016.In month of March,2016, Builder charged service tax 3.625% but in this month(April,2016) he sends the demand note with service tax 4.35%.

    But according to my knowledge, it is applicable to flat size over 2000sqft and sale price of flat over 1 crore otherwise it is 3.625% applicable to rest of all.

    Please see in below screen-short and web page link:


    When we send a mail to builder describing all the above things then he sends to me a summery of budget 2016 highlights and tells me read point no. 21.
    And no-21 says "
    The abatement rate in respect of services by way of construction of residential complex, building, civil structure, or a part thereof, is being rationalized at 70% by merging the two existing rates (70% for high end flats and 75% for low end flats)."

    The above quotation is beyond to my understanding so please guide to me.

    Rahi Akela
    E-mail [email protected]
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