New Service Tax Rate of 14% on Under Construction Flat

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  1. UDAY CHAKRABORTY

    UDAY CHAKRABORTY New Member

    D/Sir,

    What will be the new service tax (wef 01.04.2015 ) rate and approx. amt. for a under construction property in Kolkata municipal area.For example cost of the property if 16Lac then how much will be my liability.
    My id [email protected]
    regards
     
  2. Parul_Gupta

    Parul_Gupta Active Member

    The new rate of Service Tax is not yet applicable.

    The date of applicability of the new Service Tax Rate has not been announced yet.

    Currently, 12.36% would be the applicable Service Tax Rate.
     
    Shishir Nayak likes this.
  3. Shishir Nayak

    Shishir Nayak Member

    The Service Tax rate is being increased from 12% plus Education Cesses to 14%. The ‘Education Cess’ and ‘Secondary and Higher Education Cess’ shall be subsumed in the revised rate of Service Tax. Thus, effective increase in Service Tax rate will be from existing rate of 12.36% (inclusive of cesses) to 14%.

    The new Service Tax rate shall come into effect from a date to be notified by the Central Government after the enactment of the Finance Bill, 2015.
     
    Parul_Gupta likes this.
  4. UDAY CHAKRABORTY

    UDAY CHAKRABORTY New Member

    Thnx Ms.Akanksha,but I'm not convinced.Wht U told i knw tht. But As per previous rules/law it was 3.09% upto 25-30 lac flat in all metro cities.Now,in new budget ST has hiked @14%.So my Q is wht cud b d new rate of ST if d cost of UC flat is up2 16L or so.Pl giv me correct info as Im goin for Reg. of said flat on Apr.15.Thnx & rgrds. [email protected]
     
  5. UDAY CHAKRABORTY

    UDAY CHAKRABORTY New Member

     
  6. UDAY CHAKRABORTY

    UDAY CHAKRABORTY New Member

    Thnx Mr.Nayek,but I'm not convinced.Wht U told i knw tht. But As per previous rules/law it was 3.09% upto 25-30 lac flat in all metro cities.Now,in new budget ST has hiked @14%.So my Q is wht cud b d new rate of ST if d cost of UC flat is up2 16L or so.Pl giv me correct info as Im goin for Reg. of said flat on Apr.15.Thnx & rgrds. [email protected]
     
  7. Shishir Nayak

    Shishir Nayak Member

    Mr Uday I ll make you understand from beginning

    Govt Has issued an abatement scheme wherein an abatement of 75% of total value allowed and 25% of total value will chargeable.

    So Earlier service tax @12.36% on 25% of total purchase price was levied on under construction property. In other words service tax @3.09% (25% of 12.36%) was levied on Total price.

    In the same way now you need to pay @3.5% (25% of 14%) of Service tax on construction proprty
     
    Parul_Gupta likes this.
  8. Parul_Gupta

    Parul_Gupta Active Member

    I agree with @Shishir Nayak

    Once the new Service Tax Rate gets applicable, the Service Tax to be paid on Under Construction Building would be 3.5%
     
    Shishir Nayak likes this.
  9. jaiwardhan kumar

    jaiwardhan kumar New Member

    I have a confusion in the given reply by Mr. Nayak that whether the new applicable service tax @ 14% would be inclusive of educational cess and higher educational cess in lieu of existing ST @12.36%( inclusive of Ed Cess and H.Ed Cess) or it would be @14.42% (inclusive of Ed Cess and HEd Cess)? May pls clarify
     
  10. Rupa Reddy

    Rupa Reddy New Member

    14% is inclusive of Cess
     
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