Service tax on under construction apartment at chennai

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  1. Divya27

    Divya27 New Member


    I have booked a flat which is almost complete now. I have registered the sale deed during december '13. The final payment is to be made during handover. Now who is liable to pay the service tax? How much is to paid? Does 3.09% of the gross amount includes land/construction of flat/ Car parking/EB charges?
  2. Parul_Gupta

    Parul_Gupta Active Member

    The Buyer is required to pay Service Tax on purchase of Under Construction Building.

    If Flat Value is more than 1 Cr. - Effective Rate of Service Tax - 3.71%
    If Flat Size is more than 2000 sq ft - Effective Rate of Service Tax - 3.71%
    In all other Cases - Effective Rate of Service Tax -3.09%

    And yes, Service Tax would be levied on Parking Charges and all other Charges as well.
  3. Divya27

    Divya27 New Member

    Thanks for your response. Would you explain if VAT charges will be applicable
    Last edited: Sep 5, 2014
  4. Parul_Gupta

    Parul_Gupta Active Member

    VAT is levied by the State Govt and you'll have to check if Chennai levies VAT on such sales.

    Not much idea on this :(
  5. VAT charges will be applicable under works contract of TNVAT.
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