Hello Experts

I have received the sale agreement from pbel. They have charged service tax for the following components at the rate of 3.09%.

1. Basic Price (SQ Ft * SQ FT rate)

2. Floor rise charges

3. Car parking

4. Connection charges (EB abd Gas)

5, Infrastructure charges

6. Legal charges

7. club house charges

8. STP & Genset charges

and changed the following component at the rate of 12.30% on 100%

1 Maintenance

VAT tax is 2 % of TOTAL COST OF HOUSE.

I think something is missing here.For example car park should not come in Sales tax and VAT.

Please let me know how to check with sales tax.

Tanks,
Subbu
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  • Experts,

    Is it normal to service charge on car parking,EB, water club etc? I believe they should not charge on these.

    Please let me know your valuable comments.

    Tx,
    Subbu
    CommentQuote
  • Total cost of the apartment – Land cost + Construction cost (total cost - rate/sqft*super built-up sqft + car park + club membership)
    Land cost based on UDS.
    Service tax – 4.944% of construction cost. ST rates got revised from last year.
    Extras: EB/sewage/water/legal should be based on actuals.
    Corpus fund – no tax.
    Hope this helps.
    Cheers
    CommentQuote
  • As per Regulator, Car slots should not be sold but All builders include in base price . Separate charging is not correct .

    All other things are correct

    VAT adoption method agreeable to TNGST Act need to be adopted either on composite or Flat rate or 30% rebate on value of property . Land cost need to be excluded

    VAT @2% is very fair
    CommentQuote
  • Thanks Ravi. PBEL is charging separately for car parking. What about ST charges for EB, Club house , STP, Legal and infrastructure charges.

    Also PBEL is leving VAT on the total cost. Should they exclude Land COST only?

    Please provide your feedback.

    Thanks,
    Subbu
    CommentQuote
  • Originally Posted by subbulaxmi
    Thanks Ravi. PBEL is charging separately for car parking. What about ST charges for EB, Club house , STP, Legal and infrastructure charges.

    Also PBEL is leving VAT on the total cost. Should they exclude Land COST only?

    Please provide your feedback.

    Thanks,
    Subbu


    Service Tax on Under Construction Property @3.09%

    Total construction cost - Land cost = X amount

    25% of X amount *12.36% if the property cost is less than crore or 2000 sq ft

    Additional taxes as per new budget is also applicable for UC property if the property cost is more than 50 Lakhs and this includes all cost.

    EB and Infra does not attract service tax and club house as well.

    As per prevailing law it is 3.09% but most builders in chennai are still charging close to 5% on construction value.
    CommentQuote
  • Dear Friends,

    I need some clarification about service tax...I am taking a flat in noida, which is completed and builder has received the completion certificate...will I be required to pay service tax?

    I am buying this from first seller, who has not done the registry done, so, this will be cancelled by builder and allotted on my name by builder...thus I will become first buyer of this property...

    so ..just wanted to understand what will be the service tax, that I will be required to pay..

    expert comments pls...thanks
    CommentQuote