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Ganesh (Proprietor)     08 April 2012

Complicationon service tax for registered flat

A flat has been registered one year back, entire amount has been paid except 1 lakh, it was mutually decided to be paid by possession of the flat, but now the builder is demanding more money, reason behind service tax increased, my question is when the flat is registered and all taxation has been paid and the only matter was for possession, then how can a builder charge 2.06% service tax on entire amount now.  

 

Is this is a legal demand from the builder?

Please help me to for further

Regards

Ganesh



Learning

 1 Replies


(Guest)

As I understand, the developer is required to pay service tax and recover it from the flat purchaser. My understanding is that the service tax is levied only on the labor or services portion and not on the material portion of the sale consideration, since VAT in the form of the works contract tax is already applicable on that portion. For complete informtion on this topice you must consult Chartered Accountant.


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