Cost of improvement

Hi,
Previously I had a question that how to prove cost of improvement for the inherited property since there is no proof.
Got a suggestion to get the valuation report from the approver 

My father bought property for 100000 in 1981 950 sq ft house in a 3000 sq ft land
My mother built first floor for another 950 sq ft in 1992 after my father's deadth. Did renovation in ground floor also by extending for another 200 sq ft changed cement flooring to ceramic tile flooring then in 2015 she transferred her 50% share to me through settlement deed now I sold it 

Got valuation report from chartered engineer
Have a supporting proof 
Property tax payment separately for first floor 
Electricity connection for first floor 
Also in the latest sale deed sold by me clearly mentioned ground floor 1300 sq ft first floor 1100 sq ft 
Having pictures of the house before and after construction 

All these are sufficient to prove or any thing else they may ask?

One more query 
I purchased flat for 80 lakh 
Renovation made for 40 lakh
Complete interior work, civil work, tile laying , structural modification, wood work, electrical work, plumbing, false ceiling, seepage treatment etc 
Got proper detailed bill from the interior decor
Transferred money only through neft or rtgs 
How much service tax will I be charged 
Need clarity on abatement, service tax chargeable for residential property 


Asked 9 months ago in Capital Gains Tax from Chennai, Tamil Nadu
These things are enough to prove the same. No problem.
Shyam Sunder Modani
CA, Hyderabad
955 Answers
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  Talk to Shyam Sunder Modani
Dear Sir,

You have very strong documentation to prove cost of improvement. Nothing else is needed.

With respect to service tax issue, my other professional colleagues, who are expert in the service tax can help you out. 
Abhishek Dugar
CA, Mumbai
766 Answers
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Why you will be liable to pay service tax. it is residential and personal property.
Shyam Sunder Modani
CA, Hyderabad
955 Answers
4.9 on 5.0
  Talk to Shyam Sunder Modani
Dear Sir,

The documentation maintained by you is enough to prove the improvement expenses, I would also advise you file a separate photo copy of all these documents for reference purpose and back up.

In case of Service Tax, your Interior Decorator should charge you Service Tax @ 14.5% only on the Service Component and not on the materials. In case you got everything done by yourself, then No Service Tax is applicable.

Trust this clarifies your query.

Feel Free to get back/ call for any further clarifications.

Thanking You.

Regards,
CA Rohit R Sharma
BCOM, ACA, LLB - GEN, CERT. FAFP. 
Rohit R Sharma
CA, Mumbai
719 Answers
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