mayjas (manager) 15 April 2014

Service tax on maintainence charges

Hello all,

I had booked an under construction property in Pune in August 2012. full payment had been made at that time itself and i have agreement copy with me.

Bulder has informed that I am going to get posession this month, but now builder has asked for some more additional amount, stating it is the "service tax on maintainence charges". The maintainence charges for 2 years was paid in Aug 2012 (but no tax was mentioned at that time)

I have checked on the net and it states that since Dec 2013, CESTAT has scrapped those charges and we need not pay it (see below link)

https://timesofindia.indiatimes.com/city/mumbai/Flat-buyers-spared-service-tax-on-maintenance-fee/articleshow/27154579.cms

Can anyone please confirm if the builder is correct or wrong and what definite proof can i provide from my side in avoiding to pay this charge which the builder is claiming.

Thanks in advance for all your suggestions.

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saravanan (articled assistant) 19 April 2014

Hi Mayjas, please note that the said judgement talks about one time maintenance fee paid at the time of booking the flat.

Hence, if any additional maintenance fee is paid other than in the above case, the same may attract Service Tax. Hence accordingly, Service Tax seems to be applicable in the instant case.

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