Service Tax on Under Construction Flat booking - Indian Real Estate Forum

thepune1576 · 26-02-10

Budget 2010 says 10% Service tax on under construction flat booking
Can some one please put more light on this?
If yes who will pay this Buyer OR Builder?

puser · 26-02-10

Obviously buyer.

Even if builder pays; it will be taken from buyer(may be more)

realacres · 26-02-10

If this is correct, this means prices will fall as there is no apetite to digest another 10% hike

. Bad news for builders though. Man, what is happening? Builders lobby lost it's steam

, anyways, they are hardly active outside Mah & Delhi-NCR.

thepune1576 · 26-02-10

Govt giving 50K from Tax and asking to pay 3L more for 30L flat

Now 30L flat will cost 40L (3L service tax, 2L parking, 5L stam duty+mseb+ soc. main+other charges)

thepune1576 · 26-02-10

If the property (Flat) is Ready To Move (Ready Possession) then NO Service Tax....What a JOKE

realacres · 26-02-10

Quote:

Originally Posted by thepune1576

Govt giving 50K from Tax and asking to pay 3L more for 30L flat

Now 30L flat will cost 40L (3L service tax, 2L parking, 5L stam duty+mseb+ soc. main+other charges)

And this will lead excess inventory of flats

.

sandsurs · 26-02-10

Service tax will be on the service of construction. The flat cost contains land cost also. So according to me it wont be like 3L for 30L flat. If construction cost is considered as 1500/sq ft. then it will be I guess 150rs/sq ft.
This is what I have understood after reading on some of the news websites. I may be wrong.

Saurabh01 · 27-02-10

Resale flats will be better option and black money will be flooded in the market.

Venkytalks · 27-02-10

I thought 3.4% of total cost, including parking, EDC/IDC, club - everything. So 30L all inclusive flat will cost 1 Lakh more now.

BLOODY GOVT!!!!!

:-(((

punetesting · 27-02-10

Hi,

Anyone having idea, how will service tax be calculated for row-houses? For flats it will be 10% on approx 34% of flat cost.

Also, it seems it will only be paid for payments after 1st April. What if flat is 90% ready before 1st april i.e. developer has provided 90% service before 1st april?

26-02-10	#1
thepune1576 New Member Join Date: Dec 2009 Posts: 19 Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	Service Tax on Under Construction Flat booking Budget 2010 says 10% Service tax on under construction flat booking Can some one please put more light on this? If yes who will pay this Buyer OR Builder?

26-02-10	#3
realacres Veteran Member Join Date: Jun 2009 Posts: 5,670 My Mood: Thanks: 13 Thanked 45 Times in 34 Posts Rep Power: 1	If this is correct, this means prices will fall as there is no apetite to digest another 10% hike. Bad news for builders though. Man, what is happening? Builders lobby lost it's steam, anyways, they are hardly active outside Mah & Delhi-NCR.

26-02-10	#4
thepune1576 New Member Join Date: Dec 2009 Posts: 19 Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	oh! god Govt giving 50K from Tax and asking to pay 3L more for 30L flat Now 30L flat will cost 40L (3L service tax, 2L parking, 5L stam duty+mseb+ soc. main+other charges)

26-02-10	#5
thepune1576 New Member Join Date: Dec 2009 Posts: 19 Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	Another Point If the property (Flat) is Ready To Move (Ready Possession) then NO Service Tax....What a JOKE

27-02-10	#10
punetesting New Member Join Date: Jan 2010 Posts: 30 My Mood: Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	Service tax on row house? Hi, Anyone having idea, how will service tax be calculated for row-houses? For flats it will be 10% on approx 34% of flat cost. Also, it seems it will only be paid for payments after 1st April. What if flat is 90% ready before 1st april i.e. developer has provided 90% service before 1st april?

26-02-10	#2
puser Veteran Member Join Date: Apr 2009 Posts: 1,504 My Mood: Thanks: 13 Thanked 1 Time in 1 Post Rep Power: 1	Obviously buyer. Even if builder pays; it will be taken from buyer(may be more)

26-02-10	#7
sandsurs New Member Join Date: Jan 2010 Posts: 14 Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	Service tax will be on the service of construction. The flat cost contains land cost also. So according to me it wont be like 3L for 30L flat. If construction cost is considered as 1500/sq ft. then it will be I guess 150rs/sq ft. This is what I have understood after reading on some of the news websites. I may be wrong.

27-02-10	#8
Saurabh01 Member Join Date: Oct 2009 Posts: 399 Thanks: 0 Thanked 1 Time in 1 Post Rep Power: 1	Resale flats will be better option and black money will be flooded in the market.

27-02-10	#9
Venkytalks Veteran Member Join Date: Sep 2009 Posts: 2,578 Thanks: 21 Thanked 128 Times in 61 Posts Rep Power: 1	I thought 3.4% of total cost, including parking, EDC/IDC, club - everything. So 30L all inclusive flat will cost 1 Lakh more now. BLOODY GOVT!!!!! :-(((

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