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

Share
Share This Thread
  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:
    http://www.charteredclub.com/service-tax-on-under-construction-property-3-09/

    [​IMG]

    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.

    Thanks
    Rahi Akela
    E-mail [email protected]
     
Draft saved Draft deleted
Loading...
Similar Threads Forum Date
Service Tax computation for Flat under construction GST Jun 3, 2016
GST on Export of services GST Nov 27, 2017
Service Tax and GST on Property under construction GST Nov 26, 2017
Export of service GST Nov 23, 2017
Export of service GST Nov 23, 2017