Hi All,

Can someone please advise me how Service Tax is calculated on a Property for Purchase in Gurgaon?

Need to know:
1. Different components to be included
2. Percentage of tax

My current understanding is:
10.3% on EDC/IDC, IFMS, PLC, ECC, Power Backup, Club Membership

Thanks in advance
Anurag
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  • Hello...please see the official circular below:
    “The Central Government, vide its Notification No.1/2006-ST dated 1.3.2006,
    as amended by Notification No.29/2010-ST dated 22.6.2010, w.e.f. 1.7.2010
    and Notification No.36/2010 dated 28th June, 2010, has brought the
    “Construction of complexes” under the taxable service net under the
    aforesaid Service Tax Act. Accordingly all Residential or Commercial units
    constructed and allotted/sold are now subject to Service Tax at appropriate
    rate. The rate of Service Tax applicable on various Sub-heads under which
    payments are to be made for the Residential/Commercial/Retail Units are
    given below :

    Description | Applicable Service Tax
    ------------------------------------------+------------------------------------------
    Basic Sale Price (BSP) | 2.575 %
    ------------------------------------------+------------------------------------------
    Preferential Location Charge (PLC); | 10.3%
    club membership; maintenance charge; |
    other charges |
    ------------------------------------------+------------------------------------------
    EDC/IDC; IFMS; IBMS; Car Park | Nil


    The aforesaid Service Tax is applicable on all payments made by you on or
    after 1st July 2010. The payments received upto 30th June, 2010 are exempt
    from the aforesaid Service Tax. It may please be noted that the Service Tax
    is linked to the actual date of payment and not linked with the date of
    Payment Request.”
    CommentQuote
  • Originally Posted by GGrover
    Hello...please see the official circular below:
    “The Central Government, vide its Notification No.1/2006-ST dated 1.3.2006,
    as amended by Notification No.29/2010-ST dated 22.6.2010, w.e.f. 1.7.2010
    and Notification No.36/2010 dated 28th June, 2010, has brought the
    “Construction of complexes” under the taxable service net under the
    aforesaid Service Tax Act. Accordingly all Residential or Commercial units
    constructed and allotted/sold are now subject to Service Tax at appropriate
    rate. The rate of Service Tax applicable on various Sub-heads under which
    payments are to be made for the Residential/Commercial/Retail Units are
    given below :

    Description | Applicable Service Tax
    ------------------------------------------+------------------------------------------
    Basic Sale Price (BSP) | 2.575 %
    ------------------------------------------+------------------------------------------
    Preferential Location Charge (PLC); | 10.3%
    club membership; maintenance charge; |
    other charges |
    ------------------------------------------+------------------------------------------
    EDC/IDC; IFMS; IBMS; Car Park | Nil


    The aforesaid Service Tax is applicable on all payments made by you on or
    after 1st July 2010. The payments received upto 30th June, 2010 are exempt
    from the aforesaid Service Tax. It may please be noted that the Service Tax
    is linked to the actual date of payment and not linked with the date of
    Payment Request.”


    thanks a ton mate....this resolves my query...and also enlightens me on my limited knowledge topic :)

    cheers
    anurag
    CommentQuote
  • Originally Posted by anuragdutta
    thanks a ton mate....this resolves my query...and also enlightens me on my limited knowledge topic :)

    cheers
    anurag


    U are welcome Anurag...I am also learning something or other thru this forum..

    cheers
    CommentQuote