Arjun Kumar Sah (Software engineer) 11 April 2017

Property service tax for flats.

i am purchasing a flat in kolkata having carpet area 511sq.ft. and total superbuilt area of 615 sq.ft. the builder is demanding to pay 4.5% of service tax on sells amount of Rs.1650000. most of the person saying there will be no service tax of flats havingarea less than 650sq.ft. and some are saying 3.75%. So please let me help to know what will be the exactly service tax will be of 611sq ft. Thanks AJ

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3 Replies

Arjun Kumar Sah (Software engineer) 11 April 2017

please reply back here.

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 11 April 2017

Calculate service tax on under-construction properties

Properties worth less than Rs 1 crore of value: 25% service tax is applied on the base price
Properties worth more than Rs 1 crore of value: 30% service tax is applied on the base price

Exemptions
Service Tax is applicable on all residential and commercial properties irrespective of their usage. The only exemptions are:

On sale of single owner stand-alone residential dwelling
Ready-to-move-in property with Occupation Certificate

The Budget 2016 session has exempted developers from paying service tax for the construction of houses less than 650 sq ft.

Arjun Kumar Sah (Software engineer) 12 April 2017

Sir

If the Budget 2016 session has exempted developers from paying service tax for the construction of houses less than 650 sq ft.
then why promoter asking me service tax if my flat area is 616 sq ft.

please clear me sir i have booked my flat in january 2017 and loan is in process.

Thanks