Service tax to be paid while purchasing a underconstruction apartment at Kolkata

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  1. Kaushik Basu

    Kaushik Basu New Member

    Dear Sir,
    I am going to purchase an apartment at Kolkata which is under construction. Price will around 45 lakhs including car parking and ammenities. What is the rate of service tax i should pay to the builder. The builder is charging me 3.625% on total consideration. is it ok
     
  2. ZED

    ZED Well-Known Member

    I think he should be charging more. 70% of the service tax is exempt, rest 30% is payable. Service tax rate after Krishi Kalyan Cess (applicable w.e.f 1.06.2016) is 15%

    Amendments in notification No. 26/2012
    upload_2016-6-4_19-34-10.png

    At present, two rates of abatement have been prescribed for services of construction of complex, building, civil structure, or a part thereof,- (a) 75% of the amount charged in case of a residential unit having carpet area of less than 2000 square feet and costing less than Rs 1 crore, and (b) 70% of the amount charged in case of other than (a) above, both subject to fulfilment of certain conditions prescribed therein. A uniform abatement at the rate of 70% is now being prescribed for services of construction of complex, building, civil structure, or a part thereof, subject to fulfilment of the existing conditions. (Amendment in entry at S. No. 12 of notification No. 26/2012-ST refers)
    Source
    http://indiabudget.nic.in/ub2016-17/cen/dojstru2.pdf
     
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