My villa builders charging me 4.94% service tax from 2013 for each payment I made in 2016 it's 6%

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  1. Vishnu1720

    Vishnu1720 New Member

    Hi, my villa total estimate is 5550800 , its 1642sq ft total in rural area and and it's under construction from 2013, while I make each payment they are deducting 4.944% service tax from 2013. Currently when I made payment in 2016 they take 6% from the amount paid, without notifying me. Currently when I asked for balance payment bill only I came to understand about issue of each payment tax deduction. From forum I understand tax is 3.75% from 2013 for villa under construction which is less than 2000sq ft or below 1crore. Villa builders keep on deducting these huge percentages from my every payment. Is this genuine , I have not yet finished my villa yet also completion certificate from their side. So villa will costs totally around 59lakh now according to each service tax I added. I should pay. Also future payments too they will deduct 6% as service tax . am not understanding this .
     
  2. Karan Batra

    Karan Batra Well-Known Member

    As the size of your flat is less than 2000 sq ft and the value of the flat is also less than Rs. 1 Crore, therefore the Service Tax applicable in such a case should be 3.75%.

    You should ask your builder that why are they levying 6% tax.
     
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