Is service tax applicable on construction of residential house?
At present, the Service Tax rate in India is 15 per cent. The basic cost of the property that you pay includes the cost of land and construction. This now brings the effective service tax on residential property to 4.5 per cent.
Is service tax applicable on apartment?
There is no service tax charged on renting of immovable property for residential purpose. Service tax is not applicable to any amount that is refundable and collected from the tenant as security or rental deposit. The non-refundable deposit will be subject to service tax.
How is service tax calculated on a flat?
- Properties worth less than Rs 1 crore of value: 25% service tax is applied on the base price.
- Properties worth more than Rs 1 crore of value: 30% service tax is applied on the base price.
How do you calculate GST on a construction property?
Example: How to calculate GST on under-construction flat Suppose that an under-construction property worth Rs 100 is sold by a builder to a buyer. To calculate the GST on building, Rs 33 will be counted out as the land value and the GST on construction would apply only on the remaining Rs 77.
What is negative list under service tax?
Negative List of Service Tax: Under Section 66D of the Finance Act 1994, a negative list of services have been outlined, which are deemed to be exempt from service tax. Any service provided that does not come under the purview of this list is liable to be levied with service tax.
What is the GST rate for construction services?
For the invoices raised or consideration paid on or after 1.7. 2017, GST will be levied @12%(effective rate). The builder will be able to take credit Of ITC available.
How much is GST on under construction property?
However, under GST a single rate of 12% is applicable on under construction properties whereas no GST is applicable on completed or ready to sale properties only if the Completion Certificate (CC) has been issued.
Is there service tax on construction of residential complex?
Construction of residential complex was charged to service tax separately under 65(105)(zzzh) and Industrial and commercial construction was charged to service tax under 65(105)(zzq) Position after 01.07.2012 Residential complex has been redefined by replacing twelve residential units by one residential units.
What is the abatement rate for complex construction services?
The Government on 20 th June, 2012, introduced the abatement Notification No. 26/2012- Service Tax and announce that w. e. f. 1 st July, all services with regard to Construction of a complex, building, civil structure etc. would enjoy abatement/exemption of 75%. In another words, service tax would be charged on the 25% value of such services.
What is the exemption for construction of complex service?
Taxable value of Construction of Residential Complex Service shall be exempt in excess of 33%. In other words abatement of 67% is available. ISSUE 1: Whether service tax is liable under construction of complex service [section 65 (105) (zzzh)] on builder, promoter, developer or any such person,-
What is service tax on construction activities WEF 01.07.2012?
As the services has been started after 01.07.2012 the rate applicable is 12.36 as it is applicable from 01.04.2012 itself. But from your data it is clear that your services are covered under works contract ,so valuation of new work should be applicable @ 40 %. More over as the work contract services are covered under reverse charge .