Q:If you are buying an under-construction property from a developer, in such a case, the developer is considered to be the provider of construction services to the home buyer.
Latest Answer: Thanks Sunil,
I heard that as service tax is charged only on the construction cost, the effective rate of service tax on the entire value of a property below Rs.1 crore is 3.50% (14% on 25% of property value) and 4.2% (14% on 30% of property value) for the a property valued above Rs.1 crore. Is it true?
