Service Tax on House Property

Discussion in 'Abatements' started by mandira, Mar 18, 2014.

  1. mandira

    mandira Member

    Can you please help me to understand more about service tax on house properties. I have booked an flat in Jan 2010 in Bangalore (HSR Layout) which is under construction. Estimated completion date is Jan 2011. The project has 128 flats with basic amenities.

    Cost of my house is.

    Cost Land 5,50,000
    Cost of construction 13,94,000
    Total Base Cost 19,44,000
    Open Car Park 1,00,000
    Club Membership 1,00,000
    BESCOM 1,20,000
    Total Cost of Flat 22,64,000

    I read that if the cost of flat is less than 20 Lakhs (excluding parking) no service tax will be applicable.

    Can my builder charge service tax on my purchase. Can you please help me to understand this.

    Note : The house which i have booked is the smallest (both cost and area wise) in the project.

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