Answer to Q.-1 : Service Tax (ST) rate increased from 25% to 30% (of 14.5%) ie 3.625% to 4.2% upto 15-11-15 & further will be 4.35% due to Increment in SBC (Swach Bharat Cess).
Service Tax Rate Abatement Changes Made Vide Budget 2015 and Notification No. 8/2015-ST, Dated: March 01, 2015.
At present, two rates of abatement have been prescribed for services of construction of complex, building, civil structure, or a part thereof,- (a) 75% of the amount charged in case of a residential unit having carpet area of less than 2000 square feet and costing less than Rs 1 crore, and (b) 70% of the amount charged in case of other than (a) above, both subject to fulfilment of certain conditions prescribed therein. A uniform abatement at the rate of 70% is now being prescribed for services of construction of complex, building, civil structure, or a part thereof, subject to fulfilment of the existing conditions.
(Amendment in entry at S. No. 12 of notification No. 26/2012-ST refers)
Answer to Q.-2 : Lease rent is purely part of ST & it is covered under definition of Services ..-----
(iv) The purpose of the service is:
(a) the transfer or conveyance of the property or the proposed transfer
or conveyance of the property (e.g., real estate services in relation
to the actual or proposed acquisition, lease or rental of property,
legal services rendered to the owner or beneficiary or potential
owner or beneficiary of property as a result of a will or testament);.