Q:plot is 50 ft x 33 ft. duplex : ground floor 881 sq ft, FF is 818 sq ft. Except land the agreement is 39.95 lakhs for construction including materials. The plot is registered in my name separately but its under a housing complex. builder asking me service tax on whole amount. first the tax rate was 3.62%, then they charge 4.5% & now its 6%. I am confused, while many places its written for a single independent house for a family its tax exempted. So, can you pls guide me, service tax should be charged or not ?
Latest Answer: Hi,
Here i am giving you an example that how to calculate service tax. As we all know that last year govt has added two more type of taxes such as Swachh Bharat Cess-0.5% w.e.f from 15/11/20115 and Krishi Kalyan Cess-0.5% w.e.f. from 01/06/2016. So, total Service tax rate will be -15%.
Suppose Mr. A provided taxable service worth Rs.400000 to Mr. B service tax rate is 15% but abatement available is 70%
So we will calculate service tax payable by following method:
Value of service provided = 400000
Value after availing abatement = 400000-70%=120000
service tax payable = 120000*15%=18000
