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Deepak (Senior Analyst)     30 April 2010

Service Tax - Please help

Hi, I booked an apartment in April 2009, and registration in Sep2009. The builder did not tell me about the service tax part at all, and it is not there in the Sale agreement as Gross value I need to pay. Suddenly about 1-2 months back , I got a notification from builder that I need to pay service tax because Govt has been sending them letter for service tax payment. Now under this new proposal, Mr Mukherjee did not make anything clear so I am kinda confused. 
Now I want to know if I need to pay the service tax (I mean was it there earlier a rule that service tax shoudl be paid). Whatever the proposal FM has passed, is that a new one? If it is new, then whatever builder is asking for "service tax money" what is that all about? Why is builder asking for service tax in the first place if it never existed.
Please help me here. I am sure many people like me have the same question.
Regards,
Deepak



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