Service tax on under construction property in thane.. is it 4.5 %?

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  1. ridham

    ridham New Member

    Hi all

    I was reading the attached notification on increase in service tax on under construction flat(sale price under 1 crore) has been now increased from 3.625 % to 4.5 % (as of june 2016 ) as the abatement is now flat at 70%. Are we now suppose to pay service tax at this rate. Kindly clarify as I need to pay to the builder in 2 weeks time. Thanks a lot in advance.

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  2. ZED

    ZED Well-Known Member

  3. sanjayjha0704

    sanjayjha0704 New Member

    Yes, taxable service , on which service tax is leviable on a certain percentage of value of taxable service, will attract SBC on the same percentage of value as provided in the notification No. 26/2012 - service tax , dated 20th jine 2012. so, this notification would apply for SBC and KKC also in the same manner as it applies for service tax.

    for Example , in the case of GTA , (service tax +SBC+KVC)% would be (14 % service tax +.5 %SBC+.5 % KKC X 30 % = 4.5 % ( 4.2 %+.15%+.15%)

    But SBC and KKC is not integrated in the cenvat credit chain. therefore, credit of SBC and KKC cannot be availed. Furthe both can not be paid by utilising credit of any other duty of tax.
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