(Querist) 12 April 2009
This query is : Resolved
I entered into agreement for construction and agreement for sale ( of UDS)with a builder of cochin in 2006. 85% of the flat was completed in 2007 and the builder handed over the possesion to the association at this stage. As some of the repair works to my flat was not completed as agreed by the builder, i have not taken the possesion of the flat.Now the builder has completed the work and demanding following payments for issuing NOdues certificate. 1. service tax of 4% 2. work contract tax of 4% Pls inform whether i need to pay the same as per law? the UDS is already registered in my name @ 85% stage of construction.
Service Tax on Flats is not applicable it is applicable for commercial building only and also WCT is also not applicable. Even though if the service is defined under WCT means he need not to pay service tax. for further details you may mail me.
(Expert) 13 April 2009
there is still some controvery regarding levy of service tax on the residential complexes.in many cases due to non- clarification of the imposition of service tax on residential buildings service tax had been collectd by the builders. recently, there is a judgment by the GUwahati High Court in which it has been laid down that no service tax can be levied and collected from the builders of residential complexes.