Server Tax Query

POSTED BY Nitin ON April 3, 2013 11:35 am COMMENTS (5)

Dear Friends,

I booked a flat in a project in Noida, builder is charging some extra percentage as service tax on each payment of a demand, mentioned below:

Additional Chargers Server Tax Rate (%)
Basic Rate 12.36
Front/Road View (PLC) 12.36
Covered Parking 3.09
Club Charges 12.36
Power Back Up 12.36
Lease Rent 3.09

Question: Is above % of service tax is correct on each payment? Do we need to pay service tax + Ed. cess on each payment or only some of the payment because I heard somewhere that ‘Covered Parking’ is free for service tax, please clarify??


5 replies on this article “Server Tax Query”

  1. Dear Nitin, please check the service tax related link shared by me in one of the earlier post.



  2. Nitin says:

    Ok but my question was, is all part of payment mentioned below is eligible for ST including car parking?

    Basic Rate
    Front/Road View (PLC)
    Covered Parking
    Club Charges
    Power Back Up
    Lease Rent

    As per my demand letter, they are charge 12.36% as ST for below parts:
    Basic Rate
    Front/Road View (PLC)
    Club Charges
    Power Back Up

    And for rest they are charging 3.09% as ST

    So questions are:
    1. Is all above part are eligible for ST ?
    2. If yes, then is above mentioned % is correct?

  3. Dear Nitin, are you referring for VAT query in Tamilnadu? The Service Tax rate is 12.36% all over india common.



  4. Nitin says:

    @Ashal: That links talk about TN state, my property is in Noida, is same rule is applied everywhere?

    Could you please quickly comment on the applied rate, are they okay?


  5. Dear Nitin, Please check the past discussions on the same issue here. Just few days ago, the same matter was discussed. Please check that discussion.



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