Friends,
Whoever is going to resale their under construction flats. Please keep in mind the changes in service tax value for the previous BSP & current BSP.

May it help to get some better price, 10-20K are not less, are they?

I did a comparison on Service Tax on a 1000 sqft flat for LB in July-10 & now in July-11. There is an increase of 25K in ST for the new buy from 3C directly.
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  • very intelligent view Mr LChand
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  • Well..normal logic... Service tax rate is fix 2.575% so if you buy in higher rate than you are paying higher tax....
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  • Originally Posted by fritolay_ps
    Well..normal logic... Service tax rate is fix 2.575% so if you buy in higher rate than you are paying higher tax....

    logic is normal...but when one resales his under construction flat..this point is overlooked...also..one who buys in resale should also see this point..that..if goes directly to builder n buy at increased BSP...will have to pay more ST.

    ST is often overlooked by buyer..
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  • Sir... Do you feel that if someone is buying property of Rs. 44 lakh approx... will give importance of ST of just Rs. 25K...

    Even most of guys (90%).. don’t look of ST whenever they book their flat
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  • Originally Posted by fritolay_ps
    Sir... Do you feel that if someone is buying property of Rs. 44 lakh approx... will give importance of ST of just Rs. 25K...

    Even most of guys (90%).. don’t look of ST whenever they book their flat

    Dear Sir,
    25K is also not a small amount. Many people stretch their budget to buy an apartment.... New buyers are often not aware of ST..how they'll even bother about something which is unknown to them...sir...ST is not small amount.. 25K is the difference only because of BSP difference..actual ST crosses 1.2 lacs... its not a small amount... so..if one can save 25K...what is the harm...in giving a look.....

    who are not aware of ST think...now rest amount bank will pay.. & we'll start EMI from very first month ..& they adjust their budget... but then the ghost of ST jumps in..... & says...do bhaiya 10K.. (with every payment)...

    SHARING IS CARING HENCE I DO
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  • Can someone please guide me on what components service tax will be charged?
    My builder told me 2.575% on BSP, 2.575% on parking as well, 10.1% on PLC. I was under the impression that there is 0 service tax on basement parking. Also, what is the rate of tax on EDC/ IDC / IFMC etc.?
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  • Originally Posted by harshogle
    Can someone please guide me on what components service tax will be charged?
    My builder told me 2.575% on BSP, 2.575% on parking as well, 10.1% on PLC. I was under the impression that there is 0 service tax on basement parking. Also, what is the rate of tax on EDC/ IDC / IFMC etc.?

    no service tax for car parking for sure....
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  • Service tax rate is 10.3% on all extra services provided by builder..(EDC, LDC, PLC etc)..

    In construction of building.. it is assumed that 75% work is done with material cost and 25% work is done with services... so builder charge service tax 2.575% ( 24-25% of service tax 10.3%) on BSP which is equivalent ratio of material:services.

    No service tax on open parking but if builder is providing you covered car parking than can charge service tax same as charged with BSP cost.
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  • Query

    Originally Posted by LChand
    Friends,
    Whoever is going to resale their under construction flats. Please keep in mind the changes in service tax value for the previous BSP & current BSP.

    May it help to get some better price, 10-20K are not less, are they?

    I did a comparison on Service Tax on a 1000 sqft flat for LB in July-10 & now in July-11. There is an increase of 25K in ST for the new buy from 3C directly.

    Dear LChand Ji,
    I have a query and cound not find answer to this - hopefully you can answer this. If i buy an under-construction flat in resale from the owner who has paid 85% of the value(including service tax applicable till date on payments made so far).
    Now do i need to pay service tax on remaining 15% when it is paid to builder or do i need to pay service tax on entire amount(100%)
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  • Originally Posted by Atyagi001
    Dear LChand Ji,
    I have a query and cound not find answer to this - hopefully you can answer this. If i buy an under-construction flat in resale from the owner who has paid 85% of the value(including service tax applicable till date on payments made so far).
    Now do i need to pay service tax on remaining 15% when it is paid to builder or do i need to pay service tax on entire amount(100%)


    you need to pay on remaining amount only.
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