Tax on the under constrution property

First of all we are not able to see your amount that you paid and it's relevant dates they have been deleted so kindly post it again.

Secondly since you had paid builder before completion of property he will charge service tax and gst if payment even made after July 2017.

Now if your area of house is below 2000 sq feet the service tax would be 3.75% on the amount paid if the area is above 2000 sq feet the rate would be 4.5% and in budget 2016 I guess there was an amendment in service tax and rate was changed to 4.5% for all construction and in gst the rate is 12%.

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Thank you

Hi,

Hope you are doing well !

Due to some technical errors, we are not able to see dates & amounts.

However, you will be liable to pay GST as well as service tax.

The law allows you to opt for 30% of the value of the agreement as the service component, and pay the service tax on that portion. Hence, the levy of service tax effectively comes to 4.50% (i.e., 30% of 15%) of the agreement value (Assuming house area is above 2000 sq feet ).

2. In case of purchase of under-construction residential or commercial property, from a builder, involving transfer of interest in land or individual share of land to the buyer, the effective rate of GST for such purchase would be 12%, with full ITC.

Hi,

Due to some technical issue, I cant see the date and the amount that you have posted. However you will be liable to both Service Tax and GST depending on when you made the payment. Any payment made before July 2017 will be liable to Service tax and any payment post that will be subjected to GST.

Regards,

Nikhil.

Hi,

All the dates have been deleted.

Can you repost the question with dates and why builder is asking services tax now?

Service tax was levied on the construction cost. There was abatement of 75% i.e. effective rate was 25% of 12.36% or/and 15% depending upon the period. You need to calculate the figures individually i.e datewise.

Hi,

Please repost your question.