09-09-10
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#70
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Member
Join Date: Dec 2008
Posts: 462
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Quote:
Originally Posted by prateekg
Members - I have a 2BHK apartment at Spire South. Recently got a letter from the builder on depositing service tax for the instalment paid after July 1st. I want to know from members whether they have also received service tax demands from
a. Spire south or spire central
b. Other builders
Has the service tax ruling come into effect and are all builders charging the same. Thanks in advance for all help
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Dear All,
FYI
Govt of India vide notification no. 36/2010 – ST dated 28th June 2010 has introduced service tax on sale of under-construction property w.e.f 1st July 2010.
Salient points of applicability of service tax are as follows:
· Govt has provided an abatement scheme where in a deduction of 75% is allowed and tax is levied only on the balance 25%.
· Service tax is applicable on the following items at the following rates (Including Cessas applicable)
o Basic Selling Price 2.575%
o Parking 2.575%
o PLC 10.30%
· Service tax will not be levied on payments made by the customer to the builder before 1st July 2010
It's but obvious that any booking after July 10 will attract newly incorporated tax.
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