Q:I have purchased a flat in Kaikhali Kolkata, where sale deed made on Feb, 2014 on 20% of 20L total money. Final deed made on Dec, 2015 with loan from SBI, with 7.1% of govt evaluation 23L of the property cost. Completion Certificate is not issued yet and Possession letter is also provided. My question is if Service Tax is applicable for me?
Latest Answer: In Technical terms CC means Commencement Certificate and not completion certificate. YES, builder HAS to charge Service tax and VAT for flats sold even before or after obtaining CC. once the building is complete, government issues OC which means Occupancy Certificate, and flats sold / registered after that are free of Service tax and VAT.
Latest Answer: Hey Guys,
Budget 2015 has increased Service tax rate from 12.36% to 14%. The basic rate of service tax is now 14% and education cess will be levied to it. Service tax charged at the rate of 3.5% on construction service which carpet area of unit is less than 2000 sq-ft. amount charged is less than Rs.1 crore.