SERVICE TAX & WORKS CONTRACT TAX
SREEKUMAR
(Querist) 10 May 2009
This query is : Resolved
I had booked a flat in 2006 with a reputed builder. Towards this an agreement for construction and agreement for sell was executed. The payments were made as per the schedule of the builder. The UDS was registered in my Name while 85% of the construction was completed. Now the builder is refusing to handover the key as i have refused to pay service tax & works contract tax of totalling 4.04% of the construction cost.
Pls inform whether ST & WCT is payable by me as Allottee? If not, how to get the key as I have paid entire consideration of the flat
A V Vishal
(Expert) 10 May 2009
WCT is a sales tax on execution of work contract, which is payable, but Service Tax is no longer applicable to residential flats, I advise you to seek advise of a good local lawyer and take opinion, since in such matters it is very difficult to advise without going through the details of the contract entered between you and the builder.
If the demand of the builder is unjust then remedy lies with filing a suit before the consumer forum.
Uma parameswaran
(Expert) 12 May 2009
The service tax is no need to pay in respect of sale of under construction residential flat. You can take a decision after go through the agreement with the builder and the provisions in the state law.
