service tax

DEEPAK (Querist) 21 September 2010 This query is : Resolved
RAM books a Flat No. G-12 in 2008. Flat is 65% completed up to 30 June 2010. RAM is not able to pay value of that 65% to builder. So he transfer that Flat to his brother MOHAN. Builder has only change the documents in his records. MOHAN paid balance due payment as against 65% completion in September 2010. Is builder is liable to pay tax.

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Madhava Law Office (Expert) 21 September 2010
In present situation Builder is not liable to pay Service Tax as such activity is not covered under new head of service tax law.

B.Chakrapani Warrier (Expert) 21 September 2010
Section 65(105)(zzzza) of Finance Act,1994 attracts to the builder. Therefore, the builder is supposed to charge service tax to Ram/Mohan,subject to the terms in the agreement,and to pay service tax to government.