Hey, if you are wondering how to calculate service tax on flat. You have come to the right place. Every home buyer in this country is mandated by the Government to pay service tax on flats. Service tax is calculated according to the rules and regulations mandated by the state and central Government.
How to calculator service tax on construction of residential complex?Service tax of 18 percent is applicable on an under-construction flat, out of which the buyer is subjected to pay only 2/3rd, i.e., only 12 percent tax.
Service tax is not levied on renting immovable properties for residential reasons.
Service tax on completed flats :
Service tax is applicable and levied over buying of immovable properties for residential reasons. Service tax is applicable only on construction components.Service tax is levied on the total value of other services including garage, the premium of high floors, etc
The process of calculating service tax on ready possession flat is easy. Let me share how.
For Properties wherein the worth is less than Rs 1 crore of value. Roughly 15%service tax is levied on the base price. In short, the current service tax rate for real estate in India is 15%.
Service tax is applicable by the state and central government on all residential as well as commercial properties. There are certain exemptions to this rule. Read below to see the exemptions:
When selling a stand-alone residential dwelling, owned by a single resident.
Properties that are ready to move in with an Occupation certificate
Buyers are not needed to pay service tax on property that is measured less than 650 sq ft.
Let me remind you that service tax has been replaced by GST(Goods and Services Tax ) from the year 2017. You can consult with your builder and accountant to know the exact number of service tax applicable on your property.
I hope my answer about how to calculate service tax on flat is helpful.
If you want help with scrutiny of technical documents and reports, Check out NoBroker Due Diligence pack. Read more answers : is GST applicable on rental income from commercial property
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How to calculate service tax on flat?
walunir
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2 Year
2021-12-30T09:35:31+00:00 2022-01-03T10:06:51+00:00Comment
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