Service tax receipt from builder

Q: i' ve purchase new house in Vadodara , builder collect service tax from me but when i asked for receipt he said individual receipt will not be available

Please sugfest on this

Jitendra Patil,

19th June 2016

Legal in Vadodara

service tax

service tax 2016-17

service tax for completed project is unnecessary

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Replies (5)

So you mean that from now the effective rate on the entire value of a property costing below Rs.1 crore is 3.75% (i.e., 15% * 25% of the property value), and for a property above Rs.1 crore, the effective rate is 4.5% (15% * 30% of the property value). Accordingly, if you are buying a property costing Rs.75 lakh, you will have to pay Rs.2.81 lakh (3.75% of Rs.75 lakh) as service tax. Similarly, if the value of the property is Rs.1.5 crore, service tax would be Rs. 6.75 lakh (4.5% of Rs.1.5 crore). Am i right friend?

Nandakishore, Ahmedabad

21st June 2016

Comment

Hi all,
Yesterday, the Delhi High Court, with regards to a recent case, ruled that service tax cannot be levied on under-construction flats in a housing project. Service tax on under construction property is charged on 25% or 30% of its value. is not charged on the entire value of the under-construction property, and is instead levied on a certain percentage of the total value, i.e., the cost of construction.

Arpit, Delhi-NCR

21st June 2016

Comment

If it is true then this rule will give a relief for home buyers as service tax increases the overall cost of a property by about 3.75-4.5%. Do keep in mind that service tax will be levied on various other costs associated with buying a house. For example, it will be charges on the brokerage you pay to a real estate agent or broker, legal fees paid to a lawyer, and if you take a home insurance policy, service tax will be levied on the premiums paid.

visaltanwar, Delhi

21st June 2016

You can file a case against the builder for unnecessary charges as you have sale deed in which date of buy and nature of flat would be mentioned. Builder is liable to refund you with 6% interest rate.

Nandakishore, Ahmedabad

20th June 2016

Comment

Right Devesh.......and from 1st June 2016 new Service Tax rate will be:- Service tax basic rate:- 14%,
Swachh Bharat Cess:-0.5% w.e.f 15.11.2015,
Krishi Kalyan Cess:-0.5% w.e.f.01.06.2016,
Total Service tax rate:-15%

Vikash V, Ahmedabad

20th June 2016

Comment

Hi Jitendra,
You builder is making you fool. There is no service tax applicable if the project is ready-to-move or completed. That is why he is saying that individual receipt will not be available. Service tax is applicable on only on under construction property i.e 15% from 1st June 2016.

Devesh Kumar, Ahmedabad

20th June 2016

Comment