TaxTMI 
TaxTMI 
Service tax on Property
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....ervice tax on Property<br> Query (Issue) Started By: - munaj inamdar Dated:- 25-6-2011 Last Reply Date:- 27-6-2011 Service Tax<br>Got 2 Replies<br>Service Tax<br>Sir, I had booked my flat in Nov. 200....
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....9, and paid the instalments as demanded by builder. But at the time of last instalment on June 2011, he demanded service tax & Vat on agreement cost to get the possession. So my query is whether ST ....
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....& VAT payable, if yes then on what amount coz during booking of flat no ST & VAT applicable at that time. He had not yet get the completion certifiacte. Any way to escape that taxation. Thanking U ....
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.... Munaj Inamdar Reply By satish nair: The Reply: Dear mr inamdar Builders were brought into service tax wef 01.07.2010. If you have booked a flat before this date then you are not liable to pay ser....
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....vice tax on payments made BEFORE THIS DATE. But you have to pay service tax on installments paid after the above date. The builder gets a deduction of 75% and therefore the effective rate of service....
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.... tax is 2.5% rgds CA Satish Nar Reply By GANESH KANCHAN: The Reply: Dear Mr Inamdar Service tax is applicable on builders w.e.f.01.07.2010. Accordingly service tax is applicable on payment made a....
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....fter 01.07.2010 towards cost of flat (inlcuding registration and stamp duty @10.3% of 25% of property/flat value. Effective rate 2.575%. Regards CA Ganesh B Kanchan<br> Discussion Forum - Knowledge ....
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