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Rajesh (Analyst)     22 January 2012

Service tax for under construction flat

Sir/Madam,

I booked a flat on 3rd January, 2012 at Kolkata (approx 150 flats complex) in an under construction project, and when I received allotment letter, I found extra Rs.68898.00/- added as a service tax. This amount was not mentioned during booking. Property values break-up as mentioned below-

1015 sq. ft. @ Rs.1800.00/- = Rs.1827000.00/-

Car Parking = Rs.200000/-

Service Tax= Rs. 68898.00/-

I am confused why this much of amount was added. What I read, but not confirmed, car parking amount should not be considered under service tax and service tax will not be applied if poperty value is under Rs.20L.

Can you please help me out of this in calculating approx service tax or the rules or ranges for calculating service tax or where do I get proper information?

Thanks in advance for your help.


Regards,

Rajesh



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