I have buy a under contruction flat in Andheri area is 1292sq.ft do I need to pay service tax still ageerment not done?

Q: agreement not done yet, but they have issue us the allotment letter. need your advice?

Farooq Pathan,

18th October 2015

Property Tax in Mumbai

service tax

real estate

property tax in mumbai

service tax on under construction properties

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Replies (2)

So Service Tax @14% on total 25% of the Total Purchase Price is levied on Under Construction Property. In other words Service Tax @3.50% (25% of 14%) is levied on the total price paid for the purchase of an under construction property.

Ashish Bhoite, Mumbai

20th October 2015

Comment

Yes, you can pay it but ask for the payment receipt. Service Tax on under construction property is levied on the services provided by builders where building complexes are offered for sale but the payment is received before the issuance of Completion Certificate by a Competent Authority.

Ashish Bhoite, Mumbai

19th October 2015

Comment

Right Ashish,
Service Tax can only be levied on services and not on the sale of goods/immovable property & therefore in the above case service tax won't be levied on the Value of Land and would only be levied on the construction service provided by the builder/developer as per the rates in force which currently is 14% applicable from 1st June 2015.

Santosh TR,

19th October 2015