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TMI BlogRegarding service taxX X X X Extracts X X X X X X X X Extracts X X X X ..... Regarding service tax X X X X Extracts X X X X X X X X Extracts X X X X ..... a demand letter and asking for remaining amount . The BDA classified cost of land and construction cost. on the remaining amount they are charging GST @ 12 % and also charging service tax @ 4.5% on ₹ 4860000/-installment paid by me. My question is that whether they can charge service tax @4.5% on installment paid by me .Service tax is chargeable @ 3.75% on gross value instead of 4.5% as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value of property is less than 1 cr. and assuming carpet area less than 2000sqft. Reply By KASTURI SETHI: The Reply: Emphasis is on Service Tax period. You are concerned with Notification No.26/12-ST dated 20.6.12 as amended vide Notification No.9/13-ST dated 8.5.13.(Serial No.12 refers.) The issue involved is whether abatement of 75 % or 70% from the gross receipt is admissible to you. In vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w of carpet area being less than 2000 Sq. Feet and value being less than ₹ 1 crore, Service Tax is payable on 25% of the gross amount. Thus you eligible for abatement of 75% . Both conditions are required to be satisfied/qualified to claim abatement of 75% and payment of Service Tax on 25% of the gross amount charged . Are you sure that you fulfill both conditions ? In case carpet area is l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess than 2000 Sq. feet but consideration exceeds Rs.one crore, ST will be payable on 30% of the gross amount charged. In other words, abatement of 70% will be admissible in that situation.
From 1.6.16 to 30.6.17, rate of ST was 15% (ST 14%, SBC 0.5% KKC 0.5%). X X X X Extracts X X X X X X X X Extracts X X X X
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