manish (manager) 28 August 2013
I purchased a flat in Chandanagar, Hyderabad for a sum of Rs.33.13Lakhs. What is % of service tax on cost of land and work order. Builder is asking me to pay service tax @ 3.09% on cost of land and 4.94% on work order contract. are these rates valid as per the law?
milesmaxx (Employee) 06 September 2013
Service Tax is 10.3% of the price of the service paid by the buyer, excluding cost of land.Any charges not included in the agreement value will attract 10.3% tax.it is assumed that 25% of the total property cost is for service component, and 75% is cost of land, hence 10.3% of 25%, i.e. 2.575% is effective Service Tax rate.
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