Abhijeet Pawar (S/w Engineer) 13 June 2012

Service tax for under construction preoperty

Hi,

I have booked a flat in Pune on Oct 2010. It is going to be completed in Diwali of 2012. My Flat agreement cost is Rs. 2132828.

My question is, I have been said by builder to pay service tax till 30th June as per below.

Service Tax is 2.575% of Agreement Cost paid before April 2012, & 3.09% for remaining amount.

Can you please elaborate on service tax rules and regulations on basis of which percentage is calculated.

Thanks & Regards,

Abhijeet Pawar

Vineet (Director) 16 June 2012

you have to pay service tax @ 2.5% plus 3% cess = 2.575% on all payments made for under construction flat after 1-7-2010 till 31-3-2012.

from 1-4-2012 ST rate has increased. Now it is 3.09%