service tax percentage

Q: hi , I have been informed by the builder the as per the new notification of the service tax department , under group housing society , they have entitled to only 70% rebate , on 30% value they are required to pay service tax , means the new taxes in 4.5% (15%*30%) irrespective of the value of the flat , however as per the Govt notification , it should be 25% , and value of the tax would be 3.75% hence please guide me what is correct

9720202627,

14th June 2016

Property Tax in Greater Noida

swachh bharat cess

krishi kalyan cess

service tax on property

service tax percentage

service tax 2016-17

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Replies (3)

Yes, the new service tax chart would be :- Service tax Basic rate-14%,
Swachh Bharat Cess-0.5%w.e.f from 15.11.2015,
Krishi Kalyan Cess-0.5% w.e.f. from 01.06.2016
Total service tax rate-15%

Shivshankar, Delhi-NCR

16th June 2016

Comment

Hi,
Let us understand via simple case, if a Legal Lawyer, provides services in the capacity of a case to ABC and the his fee is Rs.100000 then the service tax chargable (including of Swachh Bharat Cess and Krishi Kalyan Cess would be 15% on Rs.100000 i.e. Rs.15000. Thus, the total billing to be done by Lawyer to ABC will be Rs.115000.

The segregation of value of service tax provided (i.e.Rs100000) and the tax payable thereon (i.e. Rs.15000) separately showing on the Invoice.

Richa, Delhi

16th June 2016

Comment

Hi,
At present, two rates of abatement have been prescribed for services of construction of complex, building, civil structure, or a part thereof,- (a) 75% of the amount charged in case of a residential unit having carpet area of less than 2000 square feet and costing less than Rs 1 crore, and (b) 70% of the amount charged in case of other than (a) above, both subject to fulfilment of certain conditions prescribed therein. A uniform abatement at the rate of 70% is now being prescribed for services of construction of complex, building, civil structure, or a part thereof, subject to fulfilment of the existing conditions. So, your builder is right.

Piyush S, Greater Noida

16th June 2016

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