Levy of Service Tax on Underconstruction property
Kirankumar
(Querist) 29 July 2011
This query is : Resolved
Sir,
whether service tax is applied to under construction property ?
I heard that the Honable Bombay High court stayed Govt. from collecting the Service Tax by its order in Writ Petition,
Whether that Stay is lifted or what ?
Whether I want to pay service tax for under construction property ?
ajay sethi
(Expert) 29 July 2011
1)yes as per finace Act of 2010-2011
2)bombay high court has permitted builders to deposit money collected from buyers of property under construction directly in court
3) the service tax so collected shall be refunded to builders along with accrued interest if decision goes in favour of builders
4) you will have to pay service tax if you want to buy under construction property
