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Vinay (Engg)     01 February 2011

service tax on construction link house

I have baught an house in Haryana gurgaon under subvention scheme (menas Loan will be payed by builder till June2013) June 2013 is expected possesion date. buildup area is 1000sft , super area 1209sft. Cast of super area is 1209*2313=27Lac. but total cast ( inclusive of parking charge, club mem charge etc) is 41Lac.

I have few questions here.

1. As per New rules under section 65(105)(zzzzu)Service Tax on will the service tax be charged on total cast ie 41Lac or super area ie 27Lac. Please suggest if any

2. Is the service tax be charged at time of possestion or it can be charged in part of individual payment as well.

3. I feel service tax should be only 2.5% not 2.75%.

4. Builder is also charging the 1.5L for parking. is it ok as per new rule.?

 



Learning

 1 Replies

Vineet (Director)     03 February 2011

Service tax @2.5% + cess on flat cost

Service tax @10% plus cess on club membership, preferential location, internal or externan development charges

no service tax on parking charges

Service tax shall be charged on individual payment as the tax is levied on recipt basis.


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