Service tax on flat purchase
neeraj
(Querist) 30 August 2011
This query is : Resolved
DERA SIR,
I HAVE PUCHASED FLAT FOUR MONTH BEFORE & PAID COMPLETE PAYMENT TO THE BUILDER & DONE THE REGISTRY OF FLAT WITH INTKAL.NOW BUILDER SEND ME LETTER FOR SERVICE TAX ,WHICH WAS NOT DISSCUSSED WITH ME.I HAVE TO PAY THIS TAX OR NOT.
R.Ramachandran
(Expert) 30 August 2011
Whether you purchased a ready built flat, or under construction flat? When did you book your flat?
neeraj
(Querist) 30 August 2011
IT WAS READY FLAT
neeraj
(Querist) 30 August 2011
IT WAS READY FLAT & BOOKED & REGISTER DONE WITHIN ONE MONTH IN MAY 2011
R.Ramachandran
(Expert) 30 August 2011
There is a deeming provision under the Service Tax that if the completion certificate for the building has not been obtained, but any amount is received by the builder prior to obtaining the Completion Certificate for the building, then the same will be deemed to be a construction service and service tax is payable.
Raj Kumar Makkad
(Expert) 30 August 2011
As per changed provisions of Income Tax, any payment made in such heads is liable for service tax w.e.f. 1st April 2009 so you are liable to pay whether it was discussed or not.