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Mallappa.G (Engineer)     20 December 2013

Is service tax has to be paid after sale of flat

Hello Sir,

I had purchased 2BR for 21Lacs  including  reg plus Service tax .However he dis not change the  clause in agreement to pay the service tax  when demand raises before taking possession and I  took possession without paying service Tax (because he had agreed not take to  service tax from me  orally) in end of 2009 .After two years  I had sold same flat to third party in year 2011.While selling the flat, he did not ask me to pay service Tax .Now all of suddenely  builder has sent a letter  in NOv 2013 to pay service TAX as mentioned in agreement  made in year 2009 and I am not owner of this flat now and no clause says in agreement that service tax has to paid after selling the flat.

Please suggest me on this issue and how to protect from builder legally?

Thanks in advance

MK Arjun



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