service tax rate for flat (underconstruction ) booked in 2011

POSTED BY Joydeep Banerjee ON January 10, 2013 12:46 am COMMENTS (2)

I had booked one flat ( an apartment consisting of 9 flats ) in Kolkata on Nov 2011. The sale agreement was made on Dec 2011 and registered in Feb 2012 and payments were made accordingly . Successive payments were also made onwards Apr 2012. Now the builder has demanded a service tax @ 3.09 on the entire property ( including car parking ) few days back. My question should the payment made in 2011-12 and 2012-2013 be taxed separately given that there has been an increase in ST from 10.3 to 12.36 % in the last budget ?

It is to be notes that the apartment is not in a complex and the services to be provide ( as claimed by the builder ) consists of 24 hr power backup and security service. Would it be applicable for ST payments ?

Any feedback will be highly appreciated.




2 replies on this article “service tax rate for flat (underconstruction ) booked in 2011”

  1. Joydeep Banerjee says:

    Hi Ashal,

    Thanks for your feedback. I had heard that the car parking is excluded from ST . Can you please clarify on this point ?


  2. Dear Joydeep, please check with a service tax advocate. As your building consists only 9 flats, service tax is not applicable to you. in case it’s payable now, you w’d have to pay at the current rates. For the whole amount of consideration. Before making the payment, make sure, the builder has valid service tax registration & providing you receipts of the payments made by you towards ST.



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