Service tax on property
vijay kumar agrahari
(Querist) 11 May 2014
This query is : Resolved
Dear Sir,
I got a 81(covered)/144 Sq Mtr Semi- furnished house registered in my name from UP Awas Vikas Parishad on date 16 April 2013 for Rs 2098513 only.After completion of over a year on date 29/04/2014, I have been asked to pay RS 63571 as service tax.
My queries are-
1.can the service tax be levied after registration of property in my name that also after completion of over a year.
2.Should the value of the land i.e Rs 1001052/- not be exempted from service tax.
I shall be highly obliged if I get a speedy response, as the referred letter dated 29/04/2014 has to be complied within 15 days.
Regards
Vijay Kumar Agrahari
Lucknow
9415884649
R.V.RAO
(Expert) 12 May 2014
under service tax notification no 26 dt 20/6/2012, (YOU CAN GOOGLE FOR THE SERV.TAX NOTIFICATION AND SEE ENTIRE NOTIFICATION) service tax abatement of 75% is available and buyer will be charged serv.tax @12.36% on sale value.that is how serv.tax works out to 3.09% of sale value, for res.complexes.
As per the serv.tax notification,if entire consideration is received by seller after issuance of completion certificate, no serv. tax applicable.
for serv.tax abatement applicability, the area of flat to be lesser than 2000 sq.ft and value below Rs.one crore.
For under construction complexes,serv.tax applicable, being a works contract.
taxable service under the above referred notification is given below.
taxable service:
" Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly except where entire consideration is received after issuance of completion certificate by the competent authority...."
service tax applicable on 25% value(after abatement of 75% )
