Those looking to book a house should do so before July 1. All sales of under-construction houses from July 1 will attract service tax with the finance ministry notifying tax on new services. Sale of immovable property will be deemed to be taxable unless entire consideration is paid after the issuance of completion certificate by a competent authority. However, service tax will be levied only on 25% of the gross sale value of property . Low-cost housing under the Jawaharlal Nehru National Urban Renewal Mission and the Rajiv Awas Yojana have been exempted from service tax that will begin to be levied from July 1.
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Is the service tax applicable to those who have just book the house before July’10 but the registration and possession is pending and would be doing it in Dec’10. If yes what is the total % of tax that is to be applicable. ?
Is there any clarification as to what will happen to the bookings already made, and payments which will now be collected by the Builder on these bookings?