Service Tax for house value less than 1 crore

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    ASHISH PADHY New Member

    Hi All,

    I know its a redundant query but my building developer CA is insisting that after the 2016 Union budget there is a flat 30% of the total service tax to be paid as service tax. I bought a flat worth 70 lakh. I researched and found that the service tax component should be 3.75% i.e. 25% of 15% but he keeps on saying that it is 4.5% i.e. 30% of 15%. Is the 1 crore condition removed in the current budget ? What % of service tax should i be paying ?

    Ashish Padhy
  2. Karan Batra

    Karan Batra Well-Known Member

    If value of flat more than 1 Crore - Service Tax Applicable is 4.5%
    If flat size is more than 2000 sq ft - Service Tax Applicable is 4.5%

    If any of the above condition is satisfied - service tax applicable is 4.5%

    In all other cases - the service tax applicable is 3.75%
  3. Rammohan7

    Rammohan7 New Member

    It is 4.5%from June 2016considering 15% service tax and 70% rebate
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