How is service tax calculated?

Q: How will be service tax calculated on new apartment (under construction) in Hyderabad area and where should we pay service tax?
for example, if I am buying a flat in Hyderabad of area 1500 sft @ 45 lacs including parking and amenities like electricity, water, lift, generator etc.

kumar, Hyderabad

7th August 2012

Other in Hyderabad

Follow Discussion

Also see discussions for

Hyderabad Other Other in Hyderabad

Replies (6)

Yes Kumar, 2% has been increased on service tax this March. So it will be 12.33% as you said.
If the property value is above 50 lakhs then1% will be applied as TDS to sellers. So they may increase the property cost.

swapnil, Ludhiana

10th August 2012

Comment

it can be paid at State Bank of Hyderabad.. there are around 50 branches of SBH where you can pay. Go to the nearest bank and pay.

Vinay Sharma, Jaipur

10th August 2012

Comment

You can calculate the service tax in this method 10.3% of 1/3 of 45,00,000.

swapnil, Ludhiana

8th August 2012

Comment

there is a confusion on this,as the tax paid should be12.33 service tax on 33% or 25% on total value .

kumar, Hyderabad

10th August 2012

A service tax of 10.3% was introduced by the Finance Minister on all under construction property purchased from a builder or developer.

Kunal, Hyderabad

8th August 2012

Comment

servives tax has been increased to 12.33% from this financial year
service tax has been increased to 12.33% from 2012-2013

kumar, Hyderabad

10th August 2012

Service Tax would be on 25% of the value of the property and not on the entire cost. Tax would be applicable only on the cost of labour or services of the builder or developer. All costs of land and construction material of the property would not fall under the purview of service tax.

Siddarth, Hyderabad

8th August 2012

Comment