Latest Answer: Dear Satish,
Service Tax has to be paid on all under construction properties. As per my knowledge previous year service tax was 10.30% and in the budget 2012 the service tax has been hiked by 2% . The hike rate would be applicable from the April 1st 2012. In your case, the increased service tax would be applicable only on outstanding amount ie., 10% amount and not on entire 90 % which you already paid.
I would like to highlight is that you won’t paying service tax on the entire 12.36%. Because, there is an abatement scheme where contractor is entitled to claim abatement. You can read http://www.commonfloor.com/articles/service-tax-on-purchase-of-under-construction-property-as-per-budget-2010-11-1617.html for Service Tax On Purchase of Under Construction Property. Please contact your legal expert for the update on same. Thank you