Service tax calculation for a under construction property is still 3.09 %?

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  1. Manikandan_CBE

    Manikandan_CBE New Member

    Dear chartered club members,

    Thanks for having such a wonderful forum. This is huge source of knowledge for every one.

    I read in this forum that service tax is applicable for under construction property and it should be calculated on construction cost (should not include UDS land value) * 3.09 %.

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

    But I got from my builder that it is 5 % of the construction cost. I would like to know is there any recent change in service tax calculation? can you please advice on this?

    I also came to know that 5 % VAT is applicable on service tax amount. For your kind information I have registered the property (1000 sqft) on May 2014.

    Thanks in advance your help.

    Best regards,
    Mani.
     
  2. Neha Sharma

    Neha Sharma Active Member

    If the property size is more than 2000 sq ft or costs more than 1 Crore, Service Tax Rate is 3.71%

    In all other cases, the Service Tax Rate is 3.09%

    There is no other rate of service tax applicable on under construction property
     
    Manikandan_CBE likes this.
  3. Manikandan_CBE

    Manikandan_CBE New Member

    Thanks a lot the quick response.

    I am very clear now. This really help me to go back to the builder.
     
  4. Manikandan_CBE

    Manikandan_CBE New Member

    Respected Madam,

    It would be really helpful if you could share me GO ( some where in online) which talks about this 3.09% calculation. I want to go with that to my builder.

    Thanks once again.

    Regards,
    Mani.
     
  5. Neha Sharma

    Neha Sharma Active Member

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