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. http://www.commonfloor.com/articles...tax-for-under-construction-property-1753.html 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.