Service Tax of 12.36% from 01-Apr-2012

by Vishnu

Dear ADDA Treasurers,

Some of you have written to us about when to start charging the Service Tax of 12.36%.

The answer is: from 01-April-2012.

While the Parliamentary approval on the Budget Proposal is pending, the budget document states the date from which various changes are applicable.

The budget document is available here:

Page 45 has the required clarity. Please see excerpt below:

1) The rate of service tax is being increased from ten per cent. to twelve per cent.
2) Consequent to change in the rate of service tax, changes are also being made in specific and compounding rates of tax
for the following:
[The above changes will be applicable from 01.04.2012]

Thanks to CA Navaneeth N. Kini & Co. for providing the clarity.

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Sudhat April 16, 2012 - 11:52 am


Looks like, an owner will pay two slaps of service taxes. one, when he is paying monthly maintenance to association, second, when association is out sourcing the services to vendors.

Please clear this doubts.



san April 16, 2012 - 4:47 pm

Hi Sudhat. That is the case if Service Tax Credits are not claimed.

The Association needs to remit the amount of Service Tax which is the nett of Service Tax collected from Members, and Service Tax paid through Vendor Invoices.

More information here:

Mathew Gainneos July 18, 2012 - 11:07 am

In Kerala,flats are owned by individuals and not by the Association.Individual owners rent out flats and deal with them directly.The Association collects monthly charges from Occupants, who may be Owners or Tenants.The money is used for paying for common facilities,water and maintenance by hired workers.
Will service tax be applicable for any of these?

patitpaban das November 8, 2012 - 10:29 pm

I would like to know the amount of Service Tax during registration of a Flat valued 12 lac in Dec.2010 cleared all dues to the builder.

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